You might have heard that Social Security Disability payments are rising at an unprecedented pace. That if they keep soaring, the whole Social Security system will crash and burn and we’ll never reduce the federal deficit.
OR – you might have heard that the rise in Social Security Disability was predicted long ago and is due to the influx of women that entered the workforce in the 1970’s and 80’s and “baby boomers” that began entering the age where they’re more likely to become disabled.
These forecasters also said that the rise would later level off, as baby boomers moved into retirement age and are no longer eligible for disability benefits.
Well, it may just be happening.
The chart below shows the most recent numbers for Social Security Disability payments (click on image to enlarge).
Note that total benefit payments have only gone up by 8% in the last two years and, as Social Security News points out, that’s “hardly disastrous” considering the 3.6% cost of living adjustment at the end of 2011 and the 1. 7% cost of living adjustment at the end of 2012.
There is a lot of hype and false information about Social Security Disability in the news lately. We find that sometimes a good dose of the facts helps keep the conversation from getting too far off track.
Need Social Security Disability Insurance?
Navigating the Social Security Disability process can be difficult and the majority of initial claims are denied.