Nonsequitur: Social Security Disability Insurance Insolvent Next Year

September 18, 2015

The Social Security Disability Insurance (SSDI) Trust Fund is on course to run dry in 2016, at which point it will be able to pay only about 80 percent of current benefits. Despite health improvements and technological advancements, the SSDI rolls have continued to rise, with more than 5 percent of working-age individuals now receiving benefits. Substantial inefficiencies, adverse incentives, outdated standards, and widespread fraud and abuse plague the program. – The Heritage Foundation

Almost 11 million Americans are currently eligible for SS Disability benefits. Unless SSDI is reformed, the program will be forced to immediately reduce total benefits by 20% to recipients in 2016. Further reductions are likely in the near future. The Social Security Agency is considering eligibility changes to avoid insolvency and to maintain full disability benefits to those who need it most. (More details are available here.)

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