Will government worker entitlements truly sink our economy?

Question

I hear from respected economists that we owe over 63 trillion

over the next 40 or so years in gov. pensions, soc. security, medicare ect. and that we cannot possibly pay this out without

a major economic up turn. Is this true and how do I prepare for an inevitable scenario as this?

Answer 1

Our productivity increases about 1.4% a year which isn't much but over 40 years is 70% so our economy will be much larger then. The real problem is not retirement benefits  but the increasing cost of medical care. Medicare and Medicaid is  now almost half of all medical cost and we need to do something about it now. Even in the worst case there will be enough money to pay  benefits at 2/3 the rate  promised so saving  a little extra each month can make up the shortfall.

Edit. The government pension system was discontinued for new hires in the early 80's so fewer and fewer workers are covered by it and  it will not pose a problem in 40 years.

Answer 2

Guard yourself against inflation.

It's gonna be a doozie!