Tuesday, August 23, 2011

Social Security Disability Insurance Program Overwhelmed

The Social Security’s disability program has been flooded with requests and benefit claims from laid-off workers and an aging group of baby boomers, helping to push the system toward complete insolvency, The Associated Press reported.
Applications to the program have increased up to 50 percent from over 10 years ago, as individuals with disabilities have struggled to find jobs in the current economy, according to the news outlet.
The current system will be unable to sustain itself at the current pace of applicants that are flowing in, adding to the backlog for the program that already exists. This problem has brought to light many of the inadequacies with the Federal organization, reported the AP.
New Congressional estimates lead experts to believe that the trust fund that provides money to the program will be bankrupt by 2017, something that may exacerbate the current situation, which has more than 700,000 more applicants for Social Security this year than in 2008, reported the news outlet.
There have been several measures enacted by the organization in an attempt to save money. For example, Social Security stopped mailing its statements to beneficiaries, something that could save the Federal program $30 million a year, The Boston Globe reported.

1 comment:

  1. Very interesting article. I'm a BabyBoomer WITH disabilities, so for me the impending bankruptcy of the program is certainly worrying to me. Because of my condition, it's been easy for me to see how quickly the tides of fortune can change: healthy one day, chronically ill the next. I now notice how often those in good health take it for granted; I suppose it's natural, but in my opinion, Long-Term Disability insurance is the kind of thing that should never be overlooked. Especially in light of the governmental "entitlement" programs being cut or set on a path for certain bankruptcy, it is so important for individuals to do their own research and learn all they can about insurance plans. Thanks again for the post!