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AARP Says Social Security, Medicare Trustee Reports Show 'Long-Term' Challenges

2012 Reports underscore the need for a national conversation on strengthening retirement security for Americans; action soon by Washington

April 23, 2012 – AARP’s statement on the Social Security and Medicare Trustees Reports for 2012 emphasized that there is time for action on the looming financial crisis for senior citizens and called for a “national conversation on strengthening retirement security,” which is a campaign it recently launched. The statement emphasized Social Security funding appears secure until 2033.

The statement, however, also called for action soon, saying, "The longer Washington waits to address these challenges, the more difficult it will become for workers who are trying to plan for their future."

AARP Executive Vice President Nancy LeaMond offered the following statement in reaction to the reports released today:

“For the millions of Americans who have paid into Social Security and Medicare and are counting on their benefits, today’s reports offer a clear assessment of the true status and long-term challenges facing these critical programs. The reports underscore the need for an open, national conversation focused on strengthening retirement security for today’s seniors and future generations.


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Read more Social Security News

also check Medicare and Senior Politics


“The Social Security Trustees reaffirm that the program can pay full benefits until 2033, and roughly three-quarters of promised benefits beyond that time. It is important to note that the report also confirms that Social Security’s Trust Funds continue to grow and the payroll tax holiday has had no impact on the program’s solvency, as the Treasury has repaid all borrowed funds.

“However, the Trustees also make clear that Social Security’s long-term financial challenges must be addressed. While Social Security is not in crisis, it will require modest changes to ensure current and future generations will receive the benefits they’ve earned. The longer Washington waits to address these challenges, the more difficult it will become for workers who are trying to plan for their future.

“The Trustees’ report points to an even shorter timeframe for action to shore up Medicare’s Hospital Insurance Trust Fund. AARP believes that any serious effort to strengthen Medicare must recognize that Medicare is but one part of our health care system, and that we must take steps to reduce costs throughout the entire system. By improving patient safety and care coordination, encouraging delivery system reforms, and eliminating waste and inefficiency, we can reduce the growth in health care costs for those in Medicare and for all Americans.

“In reviewing these reports, we must remember that Medicare and Social Security provide the basic foundation of retirement security for millions of Americans today, and will be just as important – if not more so – to future retirees. After more than a year of listening to Washington talk about these programs as line items in a budget, people want politicians to understand how any changes to Social Security and Medicare will impact them and their families.

“Now is the time for a national conversation about strengthening health and retirement security in America. As we consider how best to protect and strengthen these vital programs, AARP will continue to ensure that our members – and all Americans – have a say in the future of Social Security and Medicare.”

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