Every year, the Trustees of the Social Security and Medicare funds provide an update of how the funds are doing.

Unfortunately, Medicare is in worse shape than Social Security.

In 2008 and 2009, Medicare's Hospital Insurance (HI) Trust Fund is paying out more in hospital benefits and other expenditures than it receives in taxes and other dedicated revenues. Just like the Social Security fund, the shortfall is paid by redeeming trust fund assets. Because Medicare is expected to pay out more than it receives every year, the Trustees report that Medicare funds will be depleted in 2017 (Social Security is expected to be depleted in 2037).

There's more bad news about the Medicare Supplementary Medical Insurance (SMI) Trust Fund, which pays for physician services and the prescription drug benefit: SMI expenses will continue to grow substantially faster than income from the economy and beneficiary payments.

Here's a quote from the Medicare Trustees report of 2009:

"As we reported last year, Medicare's financial difficulties come sooner--and are much more severe--than those confronting Social Security.

"While both programs face demographic challenges, rapidly growing health care costs also affect Medicare. Underlying health care costs per enrollee are projected to rise faster than the earnings per worker on which payroll taxes and Social Security benefits are based."

The Medicare Trustees report that in 2008 Medicare's annual costs were about three quarters of Social Security's, but Medicare costs are expected to surpass Social Security costs by 2028.

As they do every year, the Social Security and Medicare Trustees call on politicians (and citizens, who can put pressure on politicians) to take steps to slow the bankruptcy of the Social Security and Medicare reserves:

"The financial challenges facing Social Security and especially Medicare need to be addressed soon. If action is taken sooner rather than later, more options will be available, with more time to phase in changes and for those affected to plan for changes."

Every year, the Trustees of the Social Security trust funds report on the current and projected financial status of the two programs.

The economic recession depleted Social Security funds faster than anticipated in 2009, and this is expected to continue in 2010. Here's a quote from the 2009 Social Security Trustees Report:

"The financial condition of the Social Security and Medicare programs remains challenging. Projected long run program costs are not sustainable under current program parameters.

Social Security's annual surpluses of tax income over expenditures are expected to fall sharply this year and to stay about constant in 2010 because of the economic recession, and to rise only briefly before declining and turning to cash flow deficits beginning in 2016 that grow as the baby boom generation retires."

The Trustees plan to make up the shortfall by redeeming trust fund assets, and this will continue until the reserves run out. The Social Security fund reserves are expected run out in 2037, unless something is done to replenish Social Security funds in the meantime.

Unfortunately, seniors are often the target of scams, so it's especially important for older adults to be aware of consumer protection information that can help them avoid senior scams.

The FBI offers a comprehensive list of the most common senior scams, including insurance, telemarketing, prescription drugs, "anti-aging" products and reverse mortgage scams.

To highlight the need for consumer protection and education, the U.S. government also offers a free fraud information packet of practical tips on a variety of topics to help you minimize your risk of fraud and identity theft.

One way to guard against identity theft is to order free credit reports and review them regularly to watch for any unauthorized activity that may signal identity theft has occurred.

If you feel you have been the victim of fraud or a senior scam, Consumer Fraud Reporting offers information and resources to report it.

I'm a big believer in volunteering. In fact, my volunteer efforts led me to go back to school and change careers. You just never know where your inspiration will come from.

With the economic downturn we've experienced, many people need to focus their time on earning money, but if you have some spare time and would like to help others, the US government has created a list of worthy organizations you might not know about. Go to USA.gov and click the link Volunteer Your Time.

Serve.gov is a special government-sponsored site that connects volunteers with worthy organizations. Enter keywords for topics that interest you and your location, and you'll be connected to organizations and projects that need your help.