In 2008 - just four years from now - the leading edge of the baby-boom generation will reach 62, the earliest age at which Social Security retirement benefits may be claimed and the age at which about half of prospective beneficiaries have retired in recent years. In 2011, these individuals will reach 65 and will thus be eligible for Medicare.
The pressures on the federal budget from these demographic changes will come on top of those stemming from the relentless upward trend in expenditures on medical care. Indeed, outlays for Medicare and Medicaid have grown much faster than has nominal GDP in recent years, and no significant slowing seems to be in the offing.