Social Security Disability Insurance, benefits are for those who have worked a job and paid enough taxes to Social Security in order to be eligible for benefits. Additionally, those receiving SSDI are no longer able to work, due to a medical condition that meets the standard definition of disability. These benefits usually last until the person in question is able to go back to work. However, new reports show that the funds for these benefits may be running out.
Trustees have stated that the SSDI reserves have dropped from $90.4 billion to $60.2 billion within only one year. If this the reserve continues to decrease at this rate, the funds will be at zero by the end of 2016.
This news is not new, however, as the Wisconsin Policy Research Institute shared reports that the SSDI funds were running out. It was also understood that, since 2005, SSDI has had a non-interest income. A payroll tax of 1.8 percent, paid by employers and employees, is what funds SSDI.
The number of those enrolling in SSDI has also attributed to the dwindling funds, as the number of recipients increased 10 percent, to 11 million, between the years of 2010 and 2014. Experts believe that the Social Security Administration needs to update their rules, regarding who should be eligible to receive SSDI.
Wisconsin residents who find themselves in the position where they may lose their SSDI by the end of next year could benefit from speaking to a lawyer about their different options.
Source: HTR News, “Impending Depletion of Disability Reserves,” Steve Prestegard, August 25, 2015