Social Security Disability Benefits Insolvency Trouble, Again (Still)

Social Security’s disability program is heading toward the brink of insolvency with benefit claims from aging baby boomers and laid-off workers who are not old enough to file for Social Security. Applications for benefits are up almost fifty percent from ten years ago because there are people with disabilities who have lost their jobs and cannot find a new one in today’s economy that has gotten rid of almost seven million jobs.

Many of these applicants have to wait two years or more before they have their cases resolved. This is putting a financial strain on a program that has been in the red for years. They are estimating that the fund that supports Social Security disability will be out of money by the year 2017, which will leave the programs unable to pay full benefits.

When the economy is bad it seems like claims increase because many of the people who lose their jobs are disabled and cannot find another job. Approximately a little over three million people are expected to apply for disability benefits this year. That is seven hundred thousand more claims than was filed in 2008 and a million more than ten years ago.

If you retire you get full benefits from Social Security at age sixty-six and reduced benefits at age sixty-two but if you get qualified for disability you can get full benefits before the age of sixty two but it is based on your work history. Today there are approximately thirteen point six million people that receive disability with an average monthly payment of a little over nine hundred dollars a month.

 

Social Security disability on verge of insolvency
SouthtownStar, on Mon, 22 Aug 2011 07:17:25 -0700

(AP Photo/Tony Dejak, File) Laid-off workers and aging baby boomers are flooding Social Security’s disability program with benefit claims, pushing the financially strapped system toward the brink of insolvency. Applications are up nearly 50 percent 

CBO: Social Security disability fund insolvent by 2017
WTAM.com, on Mon, 22 Aug 2011 06:45:29 -0700

A new report by the Congressional Budget Office warns that unless there is a serious improvement in the economy the Social Security disability fund will be unable to make payments starting in 2017. (WASHINGTON) The Congressional Budget Office has come