Social Security

Social Security

• Started during the Great Depression by FDR…1930s• New Deal• Old Age Survivor and Disability

Insurance…• Workers of today pay for retirees

of today…

Social Security

• 6.2% of paycheck (FICA)…employer matches• 12.4% of YOUR pay….goes to Social Security• Average benefit is $1,002 per month• 40% of retirement income for those over 65• For 20% it is ONLY source of income• 48,000,000 people on Social Security

Social Security

• Problems ahead…• Was 11 workers…1 retiree• Now 2.1 workers…1 retiree• By 2017…no longer a surplus

Social Security

Social Security

• Raise retirement age?• Increase Taxes?• Private Accounts?• ????????????????

Medicare• Medical Insurance for those over 65• Started by LBJ (1965)…Great Society

Medicare

Medicare

• All citizens pay…1.45%...both employer and employee…totaling 2.9% of pay• 42,000,000 recipients• Work more than 10 years to qualify• Monthly premiums paid out of Social

Security check

Medicare• Pays for doctor visits and hospitals stays• PARTS A, B, C, D• Program expanded during George W. Bush

years (2003) to include prescription drugs

Medicare

• Part A- Hospital (100 days)1st 20 days free…128.00 per after that for 80 days….$1,024 deductible

• Part B- Medical insurance (doctor visits and services)…pay between $96.40 and $238.00 a month

• Part C- Medicare choice• Part D- prescription drugs

Medicare• Problems…like Social Security…• Insolvent…growing costs• Move toward managed care

Medicare