Ask most Americans what the bedrock of the American retirement system is and you’ll probably hear that it’s Social Security. For over 80 years, the Social Security system in the US has helped provide American retirees with money in retirement. But far too many retirees have begun to depend on Social Security for a more and more significant portion of their retirement income. And in a few short years, they may no longer be able to depend on that income. Social Security was never intended to be a sole source of income for retirees, or even a major source of income. It was only intended to be supplemental income, to keep people from being completely destitute in their old age. But because of the way the system was structured, early recipients of Social Security income received far more Social Security income than they ever paid in Social Security taxes, making it seem as though the program could offer a significant source of income in retirement. The Social Security system’s numerous financial problems have required many fixes along the way. Social Security taxes have increased continuously over the past decades, while benefits have been decreased. But there’s a limit as to how low those benefits can be decreased before disgruntled retirees turn out at the polls to turn out benefit-cutting politicians. And so the system is slowly creaking toward a financial crisis out of which there may be no return. Social Security Situation Is Dire Over the years that the Social Security system has existed, it has periodically taken in more money in taxes than it pays out in benefits. Those excess funds are invested in interest-bearing non-marketable Treasury securities, with the money then being sent back to the Treasury Department to be spent on other things. The securities are held in a trust fund, and the interest made on those securities is added to the fund as well. Social Security’s total benefits paid has long exceeded what it takes in from payroll taxes. And now the total benefits paid exceeds both its tax income and its interest income combined. That means that the Social Security trust fund is being drawn down and will eventually disappear. Last year, the Social Security trustees expected the Social Security trust fund to be fully depleted by 2034. Thanks to reduced tax income as a result of the COVID lockdowns, that estimate has now been moved up to 2033. In other words, in 12 years the Social Security trust fund could be at zero. At that point Social Security will be unable to pay out 100% of its expected benefit payments. In fact, current estimates are that Social Security will only pay out about 76% of expected benefits by 2033. Are you ready to accept a nearly 25% hit to your Social Security retirement income? Even worse, these estimates seem to get worse every year. Just about every year the depletion date is moved forward and the estimated level of benefits decreases by a few percentage points. At the rate things are going, by 2025 we might expect Social Security to go bankrupt within five years, and for expected benefit payments to fall to below 70%. If you’re age 65 today, you can expect to live until about 2040. That means that you could face a good 10 years of a 25-30% or greater reduction in your expected Social Security income, at a time in your life when you will likely need every penny you can get your hands on. Are you prepared for that? Who Will Be Affected? If you’re over 75, you may get “lucky” and not feel the negative impact of a bankrupt Social Security system before you die. But if you’re nearing retirement or already retired, in the 55-65 age group, you’re likely going to feel the impact in a big way, particularly if you planned on depending on Social Security income for a large portion of your retirement income. Younger age cohorts are also in a tough spot, as the financial situation of Social Security will become worse over time unless either benefits are reduced or taxes are increased. Without changes to shore up the system, those under 45 may very well see Social Security payments wither away into a mere pittance, or perhaps disappear completely. How Can You Protect Yourself? Thankfully we have received plenty of warning of Social Security’s eventual demise. With Congress seemingly unwilling to fix the system, it seems all but certain today that retirees will see a forced reduction in their benefit payments. But you have at least a decade to help prepare you against that eventuality. That gives you plenty of time to assess your retirement plans, assess the state of your retirement savings, and adjust your assets accordingly to help safeguard your retirement income. One way you can do that is by investing in precious metals like gold and silver. Social Security income is all but guaranteed to decline over time, which isn’t exactly what you want to see when you’re no longer bringing in a salary and are depending on your retirement savings for income. In contrast, gold and silver offer the potential for asset growth in the future. Their long-term price growth has been on par with stock markets, while over the past 20 years they have exceeded the performance of stock markets. There are numerous options when it comes to investing in gold and silver. One of those is direct purchases of gold and silver coins or bars. Anyone can buy them, and you can choose to store them at home, in a safe deposit box, or with a precious metals depository. These precious metals coins can come in handy when you need income in retirement, as gold and silver markets are highly liquid. If you have retirement savings in tax-advantaged retirement accounts that you want to protect, such as in a 401(k), TSP, IRA, or similar account, you can invest in a precious metals IRA. A gold IRA or silver IRA allows you

Two of the biggest expenditures the federal government makes each year are its largest welfare programs, Social Security and Medicare. The two programs cost the federal government $1.9 trillion in 2020, more than the amount of money taken in through income taxes. But both of those programs are in poor fiscal shape. The problems with Social Security are well known, and well publicized. The program is expected to last just over a decade before payroll taxes are projected to be insufficient to pay benefits, at which point seniors can expect to receive less than 80% of their expected benefits. But compared to Social Security, Medicare is in far worse shape. In fact, Medicare’s fiscal position is so precarious that it almost makes Social Security look solvent. Medicare’s Hospital Insurance trust fund is expected to become insolvent in 2026, only 5 years away. After that point, it only pays for 91% of benefits. And that payment will only get smaller each year thereafter. That could have a major impact on your retirement income as you age. Why Is Medicare So Important? Nearly 63 million people are enrolled in Medicare today, nearly as many as Social Security. But while not everyone receives a huge amount of money from Social Security, the potential is for Medicare recipients to receive a large amount of benefits due to the nature of healthcare costs. The way Medicare is structured, with penalties being assessed if you choose not to opt in to the system at age 65, you’re almost forced to join Medicare once you reach retirement age. There’s hardly a senior in the country today who isn’t part of Medicare. So if Medicare isn’t going to be able to pay for medical benefits, that could have a negative effect on your health and your pocketbook. Who Pays for Healthcare Without Medicare? The big question that everyone has is, who will pay for medical services if Medicare is unable to? Medicare has essentially become a major subsidy to the healthcare industry, with just about every hospital in the country dependent on Medicare revenue for its continued operation. So if Medicare payments fall, hospitals are going to find it more difficult to operate. For those seniors who still have health insurance plans, such as retired federal employees, their primary insurer may end up paying for their healthcare first, then Medicare. But if Medicare can’t make the payments, who makes up the shortfall? Could it be you, the patient? Even worse, if Medicare is the only health insurance you have and it can’t pay, will you be on the hook for what it won’t cover? There’s a real possibility that could happen. Or if hospitals don’t want to bill their patients more, they may decide to ratchet back the number of services they offer to their patients in order to minimize costs. Your options after 2026 may be to choose between paying more for healthcare or being forced to reduce the quality of your healthcare. Neither of those sound appealing. Are You Prepared for Medicare Insolvency? Like Social Security, the fiscal position of Medicare will only deteriorate in the future without a fix. As the US population ages, more Americans are going to be drawing on Medicare for their healthcare. And fewer workers are going to be paying payroll taxes to support those Medicare beneficiaries, meaning that the percentage of benefits Medicare will be able to pay will decline each year after 2026. Congress thus far doesn’t seem to care about the situation. In fact, Democrats in Congress are trying to expand Medicare to include even more benefits, but without raising additional revenue. If they’re successful, they could push Medicare into even worse financial shape. Medicare is essentially on the verge of a crisis that could determine the very existence of the program in the future. Will Congress get serious about Medicare’s fiscal woes and take steps to shore up the program? Or will it continue kicking the can down the road and allow the program to leave both seniors and healthcare providers in the lurch? And how are you planning for Medicare’s insolvency? With the very real possibility that a Medicare trust fund depletion could mean higher healthcare costs for you, that could mean that your healthcare expenditures will increase. If you thought you’ve saved enough for retirement, your estimates may now be too low. And that means you may have to adjust your retirement planning to account for Medicare’s bankruptcy. Medicare, Markets, and Your Retirement Unfortunately the outlook for the economy and for markets doesn’t look too good for the future. With shortages of labor, parts, and raw materials, companies throughout the country are faced with uncertainty. That means the prospects for future growth aren’t that great. Stock markets are already beginning to show some signs of wariness about the future, reflected in some pretty big drops over the past couple of weeks. We could very well be on the verge of a stock market correction, or even more ominously, a long-term period of subpar economic growth and stagnant stock market valuations. With high inflation, high unemployment, and an economy that is struggling to get back to normal, there’s an increasing likelihood that the 2020s could end up just like the 1970s, a decade of stagflation that confounded investors. So if you’re looking to increase your investment gains to make up for Medicare’s shortfall, you’ll have your work cut out for you. Thankfully, there’s a way that could help protect your retirement savings while still building wealth into the future. That’s through investing in precious metals like gold and silver. Gold and Silver Can Help Build Wealth Gold and silver have a track record of gaining value through times of economic difficulty. During the 1970s they averaged 30% annualized gains over the course of the decade, far outpacing both stock markets and inflation. And over the past 20 years both gold and silver have also handily outperformed stock markets. With high inflation and low economic growth on the horizon, the stage is being