Social Security & Other Public Programs
In 2019 approximately 45 million Americans received retirement benefits from the Social Security Administration with an average monthly payment of about $1,500. And, for about a third of America’s adults, it is the income source they will primary rely on to sustain them.
Unfortunately, it is not certain if these benefits will be there for them when they are ready. It’s currently estimated that, due to declining birth rates, not enough workers will be paying into the Social Security system to sustain 100% of benefit payouts. Around 2034 it’s estimated that only 75% of promised benefits will be able to be paid.
Other public programs that support the needs of the elderly are also in question, making the need to save and plan for one’s own future at home all the more important. Such programs focus more on covering health and day to day supports and may require that the individual reside in nursing care. These include:
- Medicare Long Term Services and Supports
- Medicaid Long Term Services and Supports
- PACE – Program for the All Inclusive Care of the Elderly
In addition, special programs may exist in certain communities for such support which are often coordinated through local Area Agencies on Aging (AAAs).
AAAs are either state run or non-profit in nature. Many coordinate and offer services that help older adults remain in their homes including home-delivered meals, homemaker assistance, and whatever else it may take to support independent living.
Here are some additional resources that may help with your understanding of this topic:
- Social Security Administration – Estimation tool for your monthly benefits in retirement
- Social Security Administration – Details on the future financial status of the Social Security program
- gov – Overview of the PACE Program
- gov – Overview of Medicaid Long Term Services and Supports
- Administration on Community Living – Overview of Area Agencies on Aging