Online Calculator | No More Social Security Disability, US Worries

No More Social Security Disability, US Worries

The Social Security Disability Insurance fund first started to pay out more than it was making back in 2005. As nearly half a million people went on Social Security past year, an obvious financial issue arises. Within 7 years, experts see a bankrupt SSDI, writes the Wall Street Journal. Article source – Social Security Disability Insurance may go dry in 4 years by MoneyBlogNewz.

Social Security will spend $22 billion more than it makes

There is a $153 billion projection for Social Security on benefits and costs. This will hit by 2015. There will be a $22 billion deficit from what is being taken in. Americans are going to have to deal with this issue. The Social Security retirement fund is expected to last until 2040 while Medicare is only expected to last until 2029. Federal intervention could be required to keep SSDI alive for more than 7 years, say government auditors.

Number of applications Social Security has

Due to the recession, more people have wanted Social Security. They have been applying like crazy. There has been a huge increase in the last decade of the number of people getting Social Security. This number increased to 10.2 million people from 6.6 million. There are a lot of U.S. and territories that use SSDI funds. They’re needed by many. Texas’ enrollment has reportedly increased by 85 percent over the last 10 years, while New Hampshire’s has grown by 69 over the same span. As a percentage of total population, West Virginia receives more SSDI money than anywhere else. Health difficulties related to manual labor are believed to be the cause, a common theme among states where agriculture and manufacturing are vital. Social Security is needed quite a bit in U.S. territories such as Puerto Rico considering military bases and factories keep closing. Also, the states have a lot of unemployed. Usually these are some of the highest numbers reported. In the case of Puerto Rico, political corruption is also an issue.

SSDI what a doctor decides

Social Security and Medicare are both age-based programs. Social Security Disability Insurance, on the other hand, is about medical opinion over anything else. Local medical officials don’t have any reasons to stop enrollment since someone else pays for it. In 2009, payments were around $1,064 in Social Security Disability Insurance benefits although they can be modest. About $300,000 per person in these benefits with the additional programs are paid out to regular SSDI patients, according to Massachusetts Institute of Technology’s Social Security Disability Insurance expert David Autor.

Possibility of higher taxes

Without increasing taxes, Congress could help Social Security Disability Insurance for a short time. The Social Security fund would have to be used for this. This would drain away retirement funds, forcing retirees to swallow benefit cuts faster than they would have otherwise. Something has to be done nevertheless, states Social Security Works’ Nancy Altman.

“This is a program of crucial importance to every working American and his or her family,” she said.

Citations

Social Security Online

ssa.gov/disability/

Wall Street Journal

online.wsj.com/article/SB10001424052748703752404576178570674769318.html

Milton Friedman on Social Security: Save your money

youtube.com/watch?v=rCdgv7n9xCY

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