When Will Social Security Disability Funding Run Out?

Last week, the federal government released a report indicating that Medicare and Social Security Disability Insurance (SSDI) are moving in different directions as far as funding.

The Social Security Board of Trustees released its annual report on the long-term financial status of Medicare, indicating that the program spent less on benefits in 2013 than it did the previous year, despite covering an additional one million people.

Unfortunately, SSDI is heading in another direction—the report indicated that about 11 million Americans collected a total of $140 billion in benefits last year, up from 7.9 million people collecting $78.2 billion in 2004.

The Wall Street Journal reported that the Social Security Administration would only be able to pay 81 percent of benefits by 2016 unless Congress intervenes. Some experts, including Treasury Secretary Jacob Lew, have endorsed a change that would allocate more payroll taxes to SSDI, diverting money from the Social Security Insurance (SSI) program established for retirees.

According to the Journal, Democrats and Republicans are currently sparring as to how to make structural changes to the programs, including having finance committee meetings.

How Will Social Security Disability Help Me?

It is our hope that Congress will do something to alleviate these funding concerns. As we have been reporting, these benefits are vital to people. The average SSDI benefit is about $1,150 a month, with 92 percent of beneficiaries receiving less than $2,000 a month.

SSDI numbers are rising due to a number of reasons, including population growth, growth in the women’s labor force and the aging of Baby Boomers. SSA numbers have been expected to increase for years, so it should come as no shock to anyone. Our leaders need to act now to ensure that these vital benefits are upheld.

If you have questions about applying for SSDI, call us today or visit our FAQ page. You can also fill out the contact form located on this page.

Troutman & Troutman, P.C. – Tulsa Social Security disability lawyers

Troutman Touts: About 160,000 spouses and 1.9 million children received SSDI payments in 2013.

Source: http://online.wsj.com/articles/medicare-social-security-headed-in-different-directions-1406564712

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