Medicare Isn’t Bankrupt, Either
Rumors of Medicare’s demise are also exaggerated. Medicare’s trust fund is expected to last until 2029, but like Social Security, that doesn’t include the annual revenues from the Medicare tax. Those taxes are expected to cover 88 percent of the benefits currently provided by Medicare Part A.
But there could be changes made to Medicare in the future that could increase or decrease benefits. Though healthcare costs are typically higher in retirement, using a health savings account now can help you take advantage of big tax breaks and save for future medical expenses at the same time.
