At the same time, 62 percent of beneficiaries relied on Social Security for more than half of their income in 2015, according to the Social Security Administration; 34 percent relied on the program for 90 percent or more of income. Seniors heavily reliant on Social Security find themselves forced to make tough choices as healthcare consumes a larger share of income.
A local Rio Grande Valley health insurance broker said many people will see higher premiums in 2018. Tomas Sanchez, an insurance broker at the Affordable Health Insurance Agency in McAllen, explained decisions made in Washington caused that increase to jump between 25 and 45 percent for many Americans.
Puerto Rico’s government has defaulted on $74 billion in debt, and it has $50 billion in unfunded public pension obligations. Businesses and the economy have been mired in a decade-long recession, and analysts estimate economic losses of $20 billion to $40 billion since the hurricane hit. A longstanding exodus of residents accelerated after the storm.
A recent report showed Illinois needs an additional 2,000 teachers. The teachers' retirement system is the largest of Illinois' five pension systems, which totaled close to 130 billion in unfunded liabilities.
"The county makes a contribution of 15-31% of employee pay to CalPERS .. We are expecting that to increase to something like 26-45% by the year '24-'25," said Jesse. Across the state, cities are considering tax hikes, budget cuts , many with the threat of bankruptcy looming in the not-too distant future.
If the City lowered its investment rate assumption to 6.2%, the CalPERS projected rate of return, the unfunded pension liability would jump by two-thirds to $15 billion, lowering the funded ratio to an unhealthy 71%. Pension contributions would also increase by $400 to $500 million a year, blowing a hole in the City’s budget as pension contributions would devour over 25% of the City’s budget.
Going into this year's hurricane season the National Flood Insurance Program was already 24 billion dollars in debt. With the devastation from Harvey, Irma and Maria most experts project the debt to double putting the program in a hole it will never be able to pay back the government.
In 2034 — just 17 years from now — the Social Security Trust Fund will no longer be able to pay full promised benefits, requiring either an immediate benefit reduction of 23% or an increase in the payroll tax from 12.4% to over 16%.
There are other reasons more older Millennials are living with relatives. Many are burdened by student debt and can't afford high rents, especially in larger cities. Total U.S. student loan debt hit a record $1.36 trillion in the third quarter, the Federal Reserve Bank of New York said last week.
Debt of nonfinancial companies has grown $1 trillion in just two years and now totals $8.7 trillion, roughly 45 percent of GDP, according to Informa Financial Intelligence.
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