Funds for Social Security Disability payments may run dry by 2017, according to a new analysis done by The Congressional Budget Office. The CBO attributes this to both a poor economy and an aging population.
The CBO’s 2011 Long-Term Projections for Social Security says, “As more members of the baby-boom generation (that is, people born between 1946 and 1964) enter retirement, outlays will increase relative to the size of the economy, whereas tax revenues will remain at an almost constant share of the economy. As a result, the shortfall (in the Disability Insurance (DI)) fund will begin to grow around 2017.”
Likewise, the report projects that funding for Old-Age and Survivors Insurance (OASI) may be cleaned out by 2040. OASI currently accounts for 82 percent of the Social Security Administration’s outlays.
A reported 56 million people now receive some kind of payment from Social Security, amounting to a payout of $733 billion a year, which is roughly one-fifth of the federal budget.
Nineteen percent of these Social Security beneficiaries are disabled workers or their spouses and children.
How would it affect you and your family if Social Security Disability payments stopped in six years?
If you need help with your Social Security Disability benefits, contact the Social Security Disability experts at Newlin Disability.