Most expect that Social Security’s Old Age and Survivors Insurance fund will have enough money to finance retirement benefits for another 20 years. However, the Social Security Disability Insurance fund may not have enough money to last another two years. Indeed, many believe that Social Security Disability will become insolvent before December 2016. Unless the insolvency problems are resolved, numerous Pennsylvania residents could suffer from benefit cuts.
Once the Social Security Disability fund becomes insolvent, it will only be able to finance about 80 percent of disability benefits, which are received by disabled workers and their families. Nevertheless, no one knows when Congress plans on trying to solve this problem, nor is it clear that a workable solution will be found. Some speculate that congress will wait until the last final moment before trying to fix the problem. The other “solution” would simply be to allow Social Security Disability benefits to be cut.
Another solution Congress may try to employ is to increase taxes. Right now worker incomes are taxed 12.4 percent, half of that is paid by the worker and half is paid by the employer. Because there is not a lot of time left before the Social Security Disability fund becomes insolvent, it will likely become an important topic of debate during elections this fall.
Those who need Social Security Disability income now can rest assured that the fund has not reached insolvency yet. In order to qualify for disability benefits, though, a Pennsylvania resident must first file an appropriately put together application for those benefits. By employing professional assistance when drafting such forms, individuals may have a better chance of qualifying.
Source: moneynews.com, "CNNMoney: Social Security Faces an Imminent Funding Shortfall", Michael Kling, June 18, 2014