Finances for Social Security and Medicare are quickly depleting due to the recession.
Wired PR News – Social Security and Medicare funds are reportedly quickly depleting due to the recession. As reported by the Associated Press (AP), the government announced on Tuesday that funds for both are expected to become bankrupt sooner than formerly predicted.
As noted by the AP, the funds for Social Security is expected to pay more in benefits beginning in 2016 than collected in taxes. Medicare is projected to run out even sooner, and be depleted of funds in 2017.
Treasury Secretary Timothy Geithner is quoted in the report as stating of the matter, “the longer we wait to address the long-term solvency of Medicare and Social Security, the sooner those challenges will be upon us and the harder the options will be.” Possible measures the current administration could possibly take to deal with the financial shortfall include raising Social Security taxes or the age for retirement.