Earlier this week the federal government announced that Social Security and Medicare will be broke by 2024 if drastic changes are not made, according to the board of trustees annual report. The financially unstable programs have been further hampered by the country's struggling economy.
These programs are also facing the largest influx of participants in history, with 78 million baby boomers beginning to reach age 65 this year, according to the Wall Street Journal. The potential strain that this massive influx may have could financially cripple these government programs.
Funds were originally projected to run out in 2029, but that year has been moved up to 2024, according to the Medicare hospital insurance fund. A Medicare funding warning is being triggered for the sixth consecutive year, according to the report.
Social Security funds are expected to dry up in 2036, which is one year earlier than original estimates. The added drawdown on these funds is adding pressure onto the federal budget as well, the government reports
With these programs in potential dire straits, people may want to consider investing in whole life insurance policies, which provide a death benefit and an investment opportunity, according to the WSJ.