This is not about Social Security and Medicare, which have their own serious problems.
This is about state and local pensions that have been underfunded for many years because of unrealistic and unkept promises to government workers. Some jurisdictions like Illinois tried to solve the problem with the stroke of a pen–they just assumed higher investment returns in the future. Even with the rebound from the 2008-2009 financial crisis, the actual returns were not nearly enough. Another bear market, which will eventually happen, will mean a huge crisis and more municipal bankruptcies, ala Detroit. With current interest rates near zero from Federal Reserve policy, there will be huge losses in pension funds bond portfolios when rates return to normal.
If you are expecting to retire on a state or municipal pension, you may have little time left to save on your own for retirement in an IRA or other arrangement, even if that means cutting back on some of the things you enjoy, like that bigger house or fancy vacation. Because many states have a constitutional guarantee on pension benefits, they cannot be wiped out in a bankruptcy. Taxes will be raised and other services will be drastically cut. We may see a lot of current teachers, police, and fire fighters layed off in order to pay retirees, who have a higher priority claim on revenues.