Tuesday, September 23, 2008

Entitlement reform and financial planning

Money Magazine's Janice Revel writes on how individuals should think about Social Security and Medicare reform in the context of their own financial planning. This is an important side of reform that's often neglected, and points to why reform should take place sooner rather than later. Social Security and Medicare reform will inevitably involve significant changes to taxes and benefits, but it is difficult for individuals to make financial plans for retirement in the absence of information regarding what these tax/benefit changes will be. This uncertainty cost associated with delayed action isn't quantified, but for individuals it has to be significant.

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