For millions of older Americans, Social Security and Medicare form the foundation of retirement. These programs provide steady income and essential healthcare coverage at a time when many have limited ability to earn or save more. However, as funding pressures mount and political debates intensify, many seniors and near-retirees question whether these benefits will remain available to them.
Planning for retirement has always involved uncertainty. However, with Social Security trust funds projected to face shortfalls in the coming decade, and Medicare navigating rising healthcare costs, today’s older adults must think strategically about protecting themselves with smart planning and informed decisions.
Social Security provides monthly income to retired workers, survivors and people with disabilities. Payroll taxes fund it, and benefits are calculated based on a person’s earnings history and retirement age.
According to recent reports, the Social Security trust fund may be depleted by the mid-2030s if no changes are made. If this happens, the program could still pay about 75% of promised benefits through ongoing payroll tax collections.
Lawmakers are considering a range of solutions—raising the retirement age, increasing payroll taxes, adjusting benefits—but no permanent fix has been enacted yet. This uncertainty leaves many retirees wondering how much they can count on and when to start collecting benefits.
Working with an elder care attorney or financial advisor can help evaluate whether early claiming is wise, how to maximize spousal benefits and how Social Security fits into a broader retirement plan.
Medicare provides health coverage for adults 65 and older and for younger people with certain disabilities. It covers hospital stays (Part A), doctor visits (Part B), and prescription coverage through Part D. Many retirees also purchase supplemental insurance or enroll in Medicare Advantage plans for additional benefits.
Like Social Security, Medicare faces funding pressures. As healthcare costs rise and the aging population grows, the Medicare Hospital Insurance Trust Fund is projected to face a shortfall by the early 2030s.
However, Medicare is not going away. While future benefits may shift, older adults can expect continued access to core coverage. Gaps in coverage still require personal planning and potential out-of-pocket costs. Potential coverage gaps include:
An elder law attorney can assist in developing a plan for these uncovered expenses, whether through Medicaid eligibility strategies, long-term care insurance, or savings earmarked for health-related needs.
Although uncertainty surrounds the future of Medicare and Social Security, retirees are not powerless. Proactive steps can help protect against disruptions or benefit reductions.
These include:
It is also wise to consider how Social Security and Medicare benefits integrate with other parts of your estate plan, such as Wills, Trusts, Powers of Attorney and long-term care arrangements.
Despite the headlines, Social Security and Medicare are unlikely to disappear. They may be modified but remain essential programs with strong public support. For older adults, the best strategy is to stay informed, adapt where needed and build a legal and financial framework that promotes independence and peace of mind.
Working with an elder care attorney ensures that your plan includes the legal protections and benefit strategies that match your individual needs, no matter what the future holds.
Reference: AARP (April 30, 2025) "How Social Security and Medicare Transformed Aging in America"
Free E-Newsletter – Subscribe Now
