San Francisco Chronicle - The sluggish economic recovery has worsened the already bleak financial outlook of both Medicare and Social Security, according to an annual forecast released Friday by the Obama administration. The report offers fuel to President Obama's Republican critics and increases pressure on leaders of both parties to agree on a long-term plan to preserve the nation's principal safety net for the elderly. Medicare's main trust fund will be depleted by 2024, five years earlier than projected last year, according to the report by the trustees overseeing the program - largely because they have downgraded their expectations of economic growth.
The Social Security trust fund is now projected to last until 2036, just a year earlier than last year's estimate. Once the fund is exhausted, the incoming annual payroll taxes that pay for the program will only be sufficient to cover about three-fourths of the annual retirement benefits it is required to pay seniors. Read full story here: News New Mexico
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