How the federal government has failed the next generation of retirees

The next wave of retirees will face a grim reality as they grapple with a government system that is failing them on multiple fronts.

These daunting challenges include the Social Security Trust Fund running out of money, skyrocketing healthcare costs, stubborn inflation, and the threat of higher taxes.

But don’t take our word for it. According to a recent article in The Wall Street Journal, “In a new ranking of the world’s retirement systems, the U.S. scored a C+, falling further behind the Netherlands, Australia and Sweden. The U.S. came in 22nd out of 47 countries… with a slightly lower score than a year ago.”

This is proof that government support systems that are supposed to be helping retirees are actually failing them in multiple ways.

Social Security is on life support

Social Security, once considered as a lifeline for retirement income, is teetering on the edge of insolvency. With an aging population and fewer people entering the workforce, the program is no longer sustainable — at least in its current form.

The most glaring issue is the impending shortfall in the Social Security Trust Fund. The Congressional Budget Office estimates the trust fund will run out of money by 2032 — less than 10 years from now. And if the government doesn’t come to the rescue soon, retirees could see their benefits slashed by as much as 25%.

Even with higher-than-average cost-of-living adjustments over the last few years, Social Security benefits have still lost 40% of their buying power since 2000. So over time, Social Security has become increasingly unreliable for retirees.

Higher taxes take more of your savings

As the government continues to spend more and more money, the national debt continues to climb. It has now surpassed a record-breaking $33 trillion.

So what do you get when you have record-high national debt coupled with 40-year-low Federal income tax rates?

You get a perfect recipe for the government to raise taxes.

And since this is the first generation to fund their own retirements through IRAs and 401Ks, these higher taxes could be one more devastating blow that could leave them with even less money for retirement.

These higher taxes won’t just impact withdrawals from your IRA and 401K, either. They could also impact your Social Security benefits and other investment income.

Inflation is driving up everyday living expenses

Although the economy appears to have passed the highest peaks of inflation, that doesn’t mean it is out of the woods.

Inflation is often called the “silent killer of retirement,” because even when inflation is low (between 1%- 2%) your purchasing power can be cut in half in just a handful of years.

The prices on everyday items today are still way above what they were a few short years ago. As a result, retirees are left with significantly less purchasing power to cover their basic necessities and healthcare costs.

The skyrocketing cost of healthcare

Many people believe that Medicare will cover all of their healthcare costs in retirement.

Unfortunately, that’s simply not true. While Medicare will cover some of your medical bills, you will still have to come out of pocket for significant expenses for dental, hearing, vision, long-term care, and more.

So, even with Medicare, healthcare will likely be one of your largest expenses in retirement.

According to a recent estimate, a typical 65-year-old couple could expect to spend $683,306 on healthcare expenses in retirement. That’s a staggering number today. But with healthcare expenses growing much faster than the rate of inflation, imagine what this number could be in 10, 20, or 30 years from now.

Take matters into your own hands

So what is the biggest takeaway from all of this?

You can’t rely on the government to support you in retirement. This responsibility is 100% on your shoulders. So you need to take matters into your own hands.

While many of the issues mentioned are totally out of your control, some things are within your control.

And one of these things is knowing how and when to file for your Social Security benefits.

Most people don’t realize it, but the difference between your best and worst-case scenarios could be hundreds of thousands of dollars in retirement income.

That’s why B.O.S.S. Retirement Solutions wants to offer you a free, customized B.O.S.S. Social Security Analysis.

This free analysis pinpoints exactly how and when you should file for Social Security which could help you get the most income from your benefits. It also considers the impact on your taxes, spousal benefits, Medicare premiums, and more.

This is likely the single most important tool that could help ensure you get the most “net income” from your benefits.

The strategies are best suited for families who have saved more than $200,000 for retirement and have not yet filed for Social Security.

To learn how you could wring every nickel out of your benefits, schedule your free analysis by clicking here.

B.O.S.S Retirement Solutions has helped thousands of families get more from their Social Security benefits and they want to help you too.

About the authors: Ryan Thacker and Tyson Thacker are the president and CEO of B.O.S.S. Retirement Solutions. They are a five-time winner of Utah’s ‘Best of State’ award and have six offices located throughout the Wasatch Front.

Our firm assists retirees and pre-retirees in the creation of retirement strategies utilizing investment and insurance products. Advisory services are offered through B.O.S.S. Retirement Advisors, a Registered Investment Advisory firm. Insurance products and services are offered through B.O.S.S. Retirement Solutions. Marketing materials are provided by Infinity Marketing Services. Our fiduciary advisors assist in customized retirement planning and financial services to help today’s retirees get to and through retirement. To see a list of services please visit us at

This content is provided for informational purposes only. It is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. We are not affiliated with any government agency including the Social Security Administration.

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