Social Security Disability Fund Running Dry?

by DISABILITY PROFESSIONALS on December 5, 2012

The account the Social Security Administration uses to cover disability insurance is projected to run dry by 2016. If Congress doesn’t act to preserve this account, more than 9 million out-of-work disabled Americans, plus their spouses and children who also qualify, could see their benefits shrink considerably. With payroll taxes only covering 79 percent of the benefit, monthly checks would decrease by 21 percent, according to Bloomberg Businessweek.

Incoming disability monies does not equal outgoing

The challenge to the health of the fund has been the nine-fold increase in the amount of money paid out in benefits with money coming into the fund only increasing five times. More Americans have come to rely on the program. In 1970, about 1.3 percent of working-age adults received DI worker benefits. By 2011, that number had risen to 4.5 percent.

Despite the fact that the Americans with Disabilities Act created employment protections for disabled workers, over the years many jobs became less physically demanding and the working population remained healthy. Due to these factors, the employment rate of disabled workers has fallen considerably.

A decrease in benefits is not assured at the present time; this will be an ongoing development to watch.

Getting Legal Help

If you or a loved one needs to pursue a disability claim or wishes to discuss claim eligibility, give Disability Professionals a call at 855-201-9569 or email DisabilityProfessionals to set up your appointment today.

 

 

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