In 2005, the Social Security Disability Insurance fund started to dish out more money than it was bringing in via tax receipts. That trend has continued each year – plus the number of Social Security beneficiaries grew by 489,488 in 2010, the highest one-year increase in history. Within 7 years, experts see a bankrupt Social Security Disability Insurance, writes the Wall Street Journal. Article resource – Social Security Disability Insurance may go dry in 4 years by MoneyBlogNewz.
Paying out $22 billion more than it makes with Social Security
By 2015, projections indicate that Social Security will spend $153 billion in benefits and other costs. Americans may have to face the problem that comes with this considering $22 billion less is expected to be taken in with this. The Social Security retirement fund is expected to last until 2040 while Medicare is only anticipated to last until 2029. Government auditors explain that change has to take place. This is the only way that Social Security Disability Insurance could be able to last more than seven years.
Applicants more than Social Security can handle
Because of the recession, more people have wanted Social Security. They have been applying like crazy. Over the past decade, numbers swelled from 6.6 million beneficiaries to 10.2 million. Numerous U.S. and territories depend upon SSDI funds. In the last 10 years, there has been an 85 percent increase in Texas enrollment while, at the same time, New Hampshire has had a 69 percent growth. West Virginia gets more SSDI than any state when considering the percentage of total population.
There are problems that agriculture and manufacturing states are facing. Manual labor health troubles have been increasing. Social Security is needed quite a bit in United States territories for instance Puerto Rico considering military bases and factories keep closing. Also, the states have lots of unemployed. Typically these are some of the highest numbers reported. In the case of Puerto Rico, political corruption is also an issue.
Doctor determines Social Security Disability Insurance
Social Security and Medicare are both age-based programs. Social Security Disability Insurance, on the other hand, is about medical opinion over other things. In these cases, someone else pays for what is going on. That means there is no reason for local medical officials to stop allowing enrollment. In 2009, payments were around $1,064 in Social Security Disability Insurance benefits although they can be modest. SSDI expert David Autor of the Massachusetts Institute of Technology estimates that such additional programs amount to an average of $300,000 paid out per person over the lifetime of someone who receives SSDI benefits regularly.
Are higher taxes on the way?
Without increasing taxes, Congress could help SSDI for a short time. The Social Security fund would have to be used for this. Retirees would lose benefits pretty easily since the retirement fund would be lost. Something has to be done nevertheless, says Social Security Works' Nancy Altman.
“This is a program of crucial importance to every working American and his or her family,” she said.
Citations
ssdi, social security, social security disability insurance, social security bankrupt
Where will Social Security Disability be in four years?
The SSDI fund first started to pay out more than it was making back in 2005. As almost half a million people went on Social Security last year, an obvious financial problem arises. This has led experts to predict that SSDI will exhaust surplus funds in 4 to 7 years, reports the Wall Street Journal.
$22 billion deficit for Social Security
By 2015, projections indicate that Social Security will spend $153 billion in benefits and other costs. That’s $22 billion more than it is expected to take in, underscoring an issue that many Americans will soon face. With no changes at all, the Social Security retirement fund will last until about 2040 (and Medicare until 2029). Federal intervention could be required to keep Social Security Disability Insurance alive for more than 7 years, say government auditors.
Social Security applicants over the top
The recession sent a huge wave of new applicants into the Social Security program. There has been a huge increase in the last decade of the number of individuals getting Social Security. This number increased to 10.2 million individuals from 6.6 million. Numerous U.S. and territories depend upon SSDI funds. In the last 10 years, there has been an 85 percent increase in Texas enrollment while, at the same time, New Hampshire has had a 69 percent growth. Measuring the amount of SSDI a state gets is done with the percentage of total population that has it. In this way, West Virginia gets more Social Security Disability Insurance than any other state.
There are troubles that agriculture and manufacturing states are facing. Manual labor health issues have been increasing. United States territories like Puerto Rico heavily depend upon Social Security, considering the rash of factory and military base closures in recent years. The highest unemployment is generally reported in these states also. Puerto Rico politics are another issue. There is a lot of corruption.
Only allowed Social Security Disability Insurance if a doctor states so
Unlike age-based programs like Medicare and Social Security retirement benefits, Social Security Disability Insurance is closely tied to medical opinion. As someone else pays the bills, local medical officials don’t have the immediate incentive to keep enrollment numbers down. While Social Security Disability Insurance benefits can be modest in scope – payments averaged $1,064 per month in 2009 – participants gain access to other government benefits, which increases the cost for taxpayers. About $300,000 per person in these benefits with the additional programs are paid out to regular Social Security Disability Insurance patients, according to MA Institute of Technology's SSDI expert David Autor.
Are higher taxes on the way?
Without increasing taxes, Congress could help SSDI for a short time. The Social Security fund would have to be used for this. Retirees would lose benefits quite easily since the retirement fund would be lost. Something has to be done nevertheless, says 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
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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