By 2005, the Social Security Disability Insurance (SSDI) fund was cashing checks its tax body couldn’t money. As almost half a million individuals went on Social Security past year, an obvious financial issue arises. This has led experts to predict that Social Security Disability Insurance will exhaust surplus funds in 4 to 7 years, states the Wall Street Journal.
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. That’s $22 billion more than it is expected to take in, underscoring a problem that many Americans will shortly face. It is expected that Medicare will last until 2029. The Social Security retirement fund is anticipated to go much longer to 2040. Government auditors explain that change has to happen. This is the only way that SSDI can be able to last more than seven years.
Social Security: Drowning in applicants
The Social Security program got more applicants than normal with the recession. 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 individuals from 6.6 million. The Social Security Disability Insurance funds are needed by a lot of states and territories that the United States owns. 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. As a percentage of total population, West Virginia receives more Social Security Disability Insurance money than anywhere else.
Health troubles linked 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 United States territories such as Puerto Rico considering military bases and factories keep closing. The highest joblessness is generally reported in these states also. Puerto Rico politics are another issue. There’s a lot of corruption.
Only allowed Social Security Disability Insurance if a doctor states so
Social Security and Medicare are both age-based programs. SSDI, on the other hand, is about medical opinion over other things. Local medical officials don't have any reasons to stop enrollment since somebody else pays for it. Government benefits are given with SSDI benefits although they are around $1,064 a month on average in 2009. Working class individuals end up picking up the tab. About $300,000 per person in these benefits with the additional programs are paid out to regular Social Security Disability Insurance patients, according to Massachusetts Institute of Technology's SSDI expert David Autor.
Is possible to have higher taxes?
In the short term, the only way Congress can save Social Security Disability Insurance without tax increases is to fold it to the main Social Security fund. Retirees would lose benefits pretty easily since the retirement fund would be lost. Nancy Altman is in the Social Security Works activist group. She claims something has to be done about this.
“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 4 years?
In 2005, the Social Security Disability Insurance fund began to dish out more money than it was bringing in via tax receipts. Considering that nearly half a million new Social Security recipients went on the dole last year, the impending issue is magnified. According to the Wall Street Journal, Social Security Disability Insurance will be empty in 7 years or fewer. Source of article – Social Security Disability Insurance may go dry in 4 years by MoneyBlogNewz.
Social Security will spend $22 billion more than it makes
There’s 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. It is expected that Medicare will last until 2029. The Social Security retirement fund is expected to go much longer to 2040. Government auditors explain that change has to happen. This is the only way that Social Security Disability Insurance will be able to last more than seven years.
Number of applications Social Security has
Due to the recession, more individuals have wanted Social Security. They have been applying like crazy. 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. The SSDI funds are needed by lots of states and territories that the United States owns. 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 Social Security Disability Insurance a state gets is done with the percentage of total population that has it. In this way, West Virginia gets more SSDI than any other state.
Health problems related to manual labor are believed to be the trigger, a common theme among states where agriculture and manufacturing are vital. United States territories like Puerto Rico heavily depend upon Social Security, considering the rash of factory and military base closures in recent years. Not coincidentally, such states also tend to have the highest unemployment numbers. There are lots of problems with political corruption in Puerto Rico too.
SSDI what a doctor decides
Unlike age-based programs like Medicare and Social Security retirement benefits, Social Security Disability Insurance is closely tied to medical opinion. Local medical officials do not have any reasons to stop enrollment since somebody else pays for it. In 2009, payments were around $1,064 in Social Security Disability Insurance benefits although they can be modest. David Autor works at the MA Institute of Technology as an SSDI expert. He said that regular SSDI benefits to one person can add up to about $300,000 over a lifetime.
Should we expect higher taxes shortly
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. Retirees would lose benefits fairly quickly since the retirement fund would be lost. Nancy Altman is in the Social Security Works activist group. She states something has to be done about this.
“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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