Social Security & Retirement

The Social Security program provides protections for individuals and families against the loss of income due to retirement, disability, and death—protections that take on greater importance during periods of economic decline. Among aged persons (persons aged 65 and older), Social Security is the largest single source of income and is credited with keeping many of the nation's elderly out of poverty.

Medicare is a federal insurance program that pays for covered health care services of qualified beneficiaries. It was established as a federal entitlement program to provide health insurance to individuals 65 and older, and has been expanded over the years to include permanently disabled individuals under 65. Medicare, which consists of four parts (A-D), covers hospitalizations, physician services, prescription drugs, skilled nursing facility care, home health visits, and hospice care, among other services. This year, the program will cover an estimated 47 million persons (39 million aged and 8 million disabled).

When these programs were first created, the average life expectancy of men and women was in their 60’s and 70’s respectively. The retirement of the baby boomers, rising life expectancy, and the rising cost of medical care result in projections of large and growing budget deficits over the next several decades, and years of ignoring the structural challenges of these programs have left Medicare and Social Security near a financial cliff. The explosive growth of these programs threatens the ability of the government to keep its promises to future beneficiaries, and has devastating effects on the health of the U.S. economy.

Unless reforms are made, and savings are captured, the solvency of Social Security and Medicare will continue to weaken. In order to avoid massive tax increases in the future to pay for unfunded promises, more attention to the integrity and solvency of Medicare and Social Security is needed to protect these programs for future generations. Ultimately, any reform plan will require bipartisan support and the support of the American people.

Today’s high cost of living, medical care, and prescription drugs place a burden on many retirees throughout the nation. I understand that many widows and widowers depend upon their spouse’s insurance benefits. Our nation’s dedicated teachers, firefighters, and peace officers deserve reform in order to secure their retirement.