Full Show: When Will Social Security Run Out? and Why Clark Changed His Mind About AutoPay

The United States economy is the strongest in the developed world right now. But budget deficits have put us in the position to experience inflation and several other issues. A new report predicts that both Social Security and Medicare will run out in the 2030s. What does Clark think? Also, Clark has long discouraged using automatic payments because inaccurate bills can really screw up our wallets. But things have changed and Clark has a specific reason why automated payments are actually a good idea right now.

Plus, Christa shares your #AskClark questions and Clark gives his take. All this and more on the May 21, 2024, episode of The Clark Howard Show.

00:00 - Intro
01:36 - When Will Social Security Run Out?
07:31 - HSA Signed up Deadline
10:34 - Ambulance Coverage Insurance
12:33 - Applying to be a Food Vendor
14:44 - Why Clark Changed His Mind About AutoPay
20:29 - Credit Drop After Missing Payment
23:11 - Convert Roth IRA to a Self-Directed Roth
25:25 - Fighting With Insurance After Care after Being Treated Overseas

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Our Promise to You:

[timothysmith]

Congress needs to pay back the money they stole from Social Security.

[iittlebit]

What about cutting government spending?

[rumleyrum]

Social Security isn't the real problem. The problem is Medicare and Medicaid spending. Social Secuity has an operating deficit of about 18% or $216 billion. Raise the tax about 1% and raise the cap on the tax a modest amount. Problem solved there. Medicare and Medicaid is a different story. Only $358 billion was collected last year against a spend in that department of $1, 708 billion. The spending is 5 times the tax collected. Our medical system needs fixing because you'll never fix Medicare and Medicaid by raising taxes or cutting benefits.

[donnageitz]

Great informative show !! Recently my credit union issued new debit cards for all their customers. I was paying my cell phone with my debit card(old card) with automatic payment but then decided to change to have my automatic payment by credit card . Then I noticed that my bill went up .I found out that you receive a $10.00 discount by paying with your debit card . So back on my debit my payment went. A good idea for automatic payments on CC’s too, incase you’re ill good back up . Our country’s debt is unsustainable but sadly not many politicians seem to care, except for a few like, Senator Rand Paul .

[hqhsbtc]

Rich people are doing great, average and poor people are freaking out about rent, insurance, and food prices.

[johnallen]

Gotta say I was surprised when I heard my question answered today! Thanks Clark and team for pointing me in the right direction!!!

[adobokid]

I have a spreadsheet of all monthly bills, including credit cards, with due dates and closing dates. This way I know when my payments are due and when the billing cycle ends. I chose to make payments at least a few days before due date in case something happens. I also get notifications whenever a charge is made to any of my cards, so I can keep track and know of any fraudulent charges.

[codgerjim]

Simple credit card solution. Have your credit card send both printed bill and email bill notification.

[BobDobbs]

I like Christa's idea of setting up minimum-payment autopay as a backstop and then paying in full.

[garywolff]

Clark got it right on the head !
Everyone knows this but we are in a dream state .

[stephtraveler]

On SSA: There is No Way the government will reduce someones payout (That is already receiving a payout) It would spin the country into crisis. People spend 100% of what they get... whether it be a paycheck or an SSA check. They spend it all... So, the only option in a reduction is to those that dont receive the benefit yet.... When that happens you will see a flood of early claimers... Which will send us into recession or worse....
Thus, the only solution for SSA is to 1) Raise the cap on taxable earnings. Double it! Its the least painful method to fix SSA. 2) SSA is already means tested, right??? There are tax tiers on SSA earnings. Thus, its means tested. Thus, increase the means testing to eliminate the benefit for high net worth persons. Make the ceiling to receive a benefit at $10 million. They don't need it. 3) Reset the tax tiers and index them for future years.

[DamionLouisInPortugal]

One way is the unpopular cutting of the over inflated defense spending... Just doing this will save a lot of social programs.

[ScottReedKC]

No consumer debt or car payments here. Chasing that credit score and airline miles sounds like a total time suck.

[glen]

Side note - Why can't rational, smart, and kind people like Clark Howard run for office?

[carolynscilley]

They give all that money to other countries. Let's just keep it all in this country.

[trackguy]

I have missed credit card payments about four times by deleting the billing emails by mistake. I called the next month and begged for forgiveness. Everything I was given forgiveness, but I needed to pay right away from my checking account. I kept my credit score in the 800s.

[felitacavette]

The SSN segment sound good, but when everyone talks about cutting items, we want to cut items that effect people and people who have less resources. Most are people who have worked all their lives. Most people will not retire with stock options... The gap between people who have and people who have less resources is so large.

[ppumpkin]

I had a self-directed Roth IRA - the trustee kept upping the fees. In addition to what Clark said about a Roth not having the tax advantages for real estate, another big disadvantage is in a Roth you can't have a mortgage on the property. Traditional Roths or IRA's do not allow you to use credit or margin.

[gilmendoza]

Nice one hour early… good morning all…

[Yodel]

Regarding the government deficit, our social security fund is the largest lender to our government currently. Please add that into your timeline. If social security funds continue to be used to support our spending, we will run out of money faster. Of course, the required reserve ratios that banks have might not apply.