In 2005, the Social Security Disability Insurance fund began 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 last year, the highest one-year increase in history. This has led experts to predict that Social Security Disability Insurance will exhaust surplus funds in four to 7 years, reports the Wall Street Journal.
Losing $22 with Social Security
There’s a $153 billion projection for Social Security on benefits and costs. This will hit by 2015. Americans can have to face the problem that comes with this considering $22 billion less is anticipated to be taken in with this. The Social Security retirement fund is anticipated to last until 2040 while Medicare is only expected to last until 2029. Government auditors explain that change has to happen. This is the only way that Social Security Disability Insurance could be able to last more than seven years.
Number of applications Social Security has
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 individuals getting Social Security. This number increased to 10.2 million individuals from 6.6 million. There are lots of United States and territories that use SSDI funds. They’re needed by many. Texas’ enrollment has reportedly increased by 85 percent over the last 10 years, while New Hampshire’s has grown by 69 over the same span. West Virginia gets more SSDI than any other state when considering the percentage of total population.
The cause that many suspect is the manual labor related health troubles that many states with manufacturing and agriculture are facing. In the last few years, military bases and factories have been closing in U.S. territories for instance Puerto Rico. That means more people are relying on Social Security there. The highest joblessness is usually reported in these states also. Puerto Rico politics are another issue. There is a lot of corruption.
Getting doctor's approval for SSDA
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 Social Security Disability Insurance benefits although they’re around $1,064 a month on average in 2009. Working class individuals end up picking up the tab. David Autor works at the Massachusetts 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.
Is possible to have higher taxes?
Increasing the Social Security fund would be the only way to conserve Social Security Disability Insurance without increasing taxes. Retirees would lose benefits pretty quickly since the retirement fund would be lost. However, as Nancy Altman of the activist group Social Security Works contends, something must be done.
“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
Social Security Disability Insurance may go dry in four years
By 2005, the Social Security Disability Insurance (SSDI) fund was cashing checks its tax body couldn’t cash. As nearly half a million individuals went on Social Security past year, a clear financial issue arises. In accordance with the Wall Street Journal, SSDI could be empty in 7 years or fewer. Post resource – Social Security Disability Insurance may go dry in 4 years by MoneyBlogNewz.
$22 billion deficit for Social Security
By 2015, projections indicate that Social Security will spend $153 billion in benefits and other costs. There could be a $22 billion deficit from what is being taken in. Americans are going to have to deal with this issue. It is anticipated 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 could be able to last more than seven years.
Too many individuals applying for Social Security
Because of 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 Social Security Disability Insurance funds are needed by a lot of states and territories that the U.S. owns. Texas’ enrollment has reportedly increased by 85 percent over the last 10 years, while New Hampshire’s has grown by 69 over the same span. 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 Social Security Disability Insurance than any other state.
The trigger that many suspect is the manual labor related health troubles that many states with manufacturing and agriculture are facing. 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 joblessness is generally reported in these states also. In the case of Puerto Rico, political corruption is also an issue.
Doctor determines SSDI
Social Security Disability Insurance is more about medical opinion rather than being depending on age such as Medicare and Social Security. In these cases, somebody 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. David Autor works at the MA Institute of Technology as an SSDI expert. He said that regular Social Security Disability Insurance benefits to one person can add up to about $300,000 over a lifetime.
Should we expect higher taxes soon
In the short term, the only way Congress can conserve SSDI without tax increases is to fold it to the main Social Security fund. Retirees would lose benefits pretty quickly since the retirement fund would be lost. Nancy Altman is in the Social Security Works activist group. She says 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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