For a lot of people it’s understandably terrifying to think about what could or would happen if the Social Security disability fund suddenly ran out of money. They fear benefits would dry up and they’d quickly be left destitute and unable to care for themselves, or that their conditions could worsen from a lack of access to adequate care. But most of all, they fear that all the hard work they’ve put in throughout their lives, paying taxes, was wasted. But the good news is, recent studies are showing there may be no reason to fear at all.
Social Security Disability
A person can only qualify for SSD benefits if they are able to prove they suffer from any terminal illness, or “qualifying medical condition(s)” that prevent “stable employment” for at least a year. As part of providing proof, applicants are required to disclose an assortment of medical records and other official documents to validate their claims. Some applicants may also need to have sufficient work credits to be eligible.
What If Funds Run Out?
Contrary to what most people believe, currently enrolled beneficiaries would continue to receive benefits whether the SSD fund ran dry or not. The only difference would be a slight 9% decrease in amounts to offset the lack of reserved funds. All funds would be provided by the taxes that are currently contributing to the SSD fund today by active employees. That means, regardless of last years predictions that funds were going to run out by 2034, the people who truly need the assistance would still get it.
Of the 10 million disabled citizens who are currently enrolled in the program and rely on their SSDI benefits, many remain concerned as reports continue to explain the how the Old-Age and Survivors Insurance (OASI) trust fund running out by 2034 would affect beneficiaries, specifically regarding the information about the 20% monthly payment cuts. However, it’s important to acknowledge that those predictions are only true if everything remains exactly the same as it is – which is definitely not the case.
What’s Happening Now?
With more than 10,000 baby boomers becoming eligible for benefits every day, and birth rates falling with every new generation, the overall costs of SSA programs are dropping fast. In fact, by 2040 when the last of the baby boomers start slipping into retirement and a fresh new workforce enters the job market, many people expect to see funds go even further than they ever have before – lasting as much as 20 years longer than expected.
Have More Questions?
For more information about Social Security Disability, or questions regarding your eligibility, we encourage you to reach out to our insightful Social Security disability attorneys at Esper Aiello Law Group today. Call us, today, at 313.964.4900 or fill out the form in the sidebar or on our contact page, and learn more about how we can help you.