Over the last several years, residents in Pennsylvania have likely heard about efforts to reform the Social Security retirement program because of projected financial shortfalls. Although this is definitely an issue of concern, financial trouble is also on the horizon for the Social Security disability program. If something is not done to remedy projected shortfalls in the SSD fund, beneficiaries could see a significant reduction in payments, which could create undue hardship.
A newly released report from the Social Security Administration indicates that the disability program will see shortfalls by 2016. Furthermore, incoming revenues "won't be enough to offset a 20 percent cut in payments." This has created concern among many, who worry about what will happen if a solution isn't found.
In addition to projected financial issues, SSD applications are expected to increase in number. As the working population grows older, so too does the risk for sustaining a disability.
As this Social Security Disability issue comes to the forefront over the next couple years, the hope is that something can be done to resolve the financial predicament. It will be important to know how many people with serious injuries or illnesses have been left unable to work.
One critical aspect of applying for disability benefits is making sure that the application accurately displays financial needs. This way, there is a better chance that the person who is applying will receive the benefits they need if the claim is approved. The potential of SSD budget shortfalls in the future shouldn't be a deterrent to apply for benefits as needed, especially since this doesn't change the person's existing medical and financial needs.
Source: New York Post, "Disabled fund," John Aidan Byrne, June 8, 2013