Treasury Secretary Jacob Lew, accompanied by Health and Human Services Secretary Kathleen Sebelius, speaks about Social Security and Medicare. (AP Photo/Charles Dharapak)

WASHINGTON – The government said Friday that Medicare’s giant hospital trust fund will be exhausted in 2026, two years later than projected last year, while the date that Social Security will exhaust its trust fund remained unchanged at 2033.

The latest projections were included in the annual report of trustees of the trust funds. The new report warned that despite the small improvement in Medicare, both it and Social Security face significant funding challenges as the giant baby boom generation continues to retire. Currently, 58 million Americans are receiving Social Security benefits.

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