Changes Required to Confront Financial Challenges Facing Social Security and Medicare

WASHINGTON, D.C. - The Insured Retirement Institute (IRI) released the following statement from IRI President and CEO Cathy Weatherford in response to reports released today by the trustees of Social Security and Medicare:

"These reports underscore yet another retirement risk confronting future retirees-entitlement risk. IRI research shows that about nine out of ten Baby Boomers are expecting Social Security to be a source of income during retirement. Yet, given the long-term financial challenges facing Social Security and Medicare, there is tremendous uncertainty regarding what Americans can count on from these retirement programs. The only thing that is certain is that these programs require changes to keep them financially viable and that these changes may potentially reduce the cumulative amount of benefits that future retirees will receive from them. Regarding Social Security, older Boomers may be subject to a change in the measure of inflation that would affect cost of living adjustments. Younger Boomers and following generations could be subject to a number of possible changes including an increase in the retirement age, means testing and other potential modifications to the benefit formula. To ensure that they will have the same level of financial security during their retirement years, all consumers must develop a plan today that identifies alternative sources of lifetime income."

For more findings from IRI's second annual survey on Boomers' retirement expectations, click HERE.

About the Insured Retirement Institute: The Insured Retirement Institute (IRI) is a not-for-profit organization that for twenty years has been a mainstay of service, commitment and collaboration within the insured retirement industry. Today, IRI is considered to be the authoritative source of all things pertaining to annuities, insured retirement strategies and retirement planning. IRI proudly leads a national consumer education coalition of nearly twenty organizations and is the only association that represents the entire supply chain of insured retirement strategies: our members are the major insurers, asset managers, broker dealers and more than 150,000 financial professionals. IRI exists to vigorously promote consumer confidence in the value and viability of insured retirement strategies, bringing together the interests of the industry, financial advisors and consumers under one umbrella. IRI's mission is to: encourage industry adherence to highest ethical principles; promote better understanding of the insured retirement value proposition; develop and promote best practice standards to improve value delivery; and to advocate before public policy makers on critical issues affecting insured retirement strategies and the consumers that rely on their guarantees. Visit www.IRIonline.org today to experience the vast resources of the Insured Retirement Institute for yourself.

- END -