Outlook for Elderly Americans Slightly Improves
June 3, 2013
The U.S. program that pays medical costs for people over age 65 is on
course to run short of money in 2026, which is two years later than
Friday's report by top U.S. financial officials says the program
benefited from a slower increase in medical costs.
Data also show that the old age pension program called Social Security
will not have enough money to pay full benefits by 2033, which is the
same as previous projections. That program is currently a key source of
income for 58 million Americans.
say they will have to cut benefits sharply unless Washington agrees on
ways to increase revenue, cut expenses or both. Experts say prompt
action will make these adjustments less painful for taxpayers and
recipients, but Republicans and U.S. President Barack Obama's Democratic
Party have been haggling over this issue for a couple of years without
These programs make up more than one-third of government expenses. The
costs are growing as 10,000 members of the very large "Baby boom"
generation reach age 65 each day. The next generation has fewer members,
so there are proportionately fewer people paying taxes to support these
so-called entitlement programs.
Separate economic reports show U.S. consumer confidence rose in May to
the highest level in more than five years. Consumer spending declined
slightly in April.