The Social Security Disability is moving toward insolvency a little faster than what was initially projected. In fact, it is said that it is expected to go into the red in 2016.
The program is supported by paycheck deductions, but it is still expected to be insolvent in 2 ½ years and the claims around the country are mounting, including in Minnesota.
The newly released figures show that 124,641 Minnesotans received payments in 2012. This is 50 percent higher than a decade before. This means that the increase is a 44 percent increase.
The government says that demographics have driven the spike in the number of claims. The population is aging and those individuals are going to be faced with disabilities late in their careers.
The number of baby boomers is expected to go from the 35 million the country has now to 70 million.
This should not discourage anyone who qualifies for Social Security Disability from applying for it.
A study conducted by the National Bureau of Economic Research shows that the aging workforce accounts for some of the expanding disability cases, but not all of them. Some analysts say that the program has become rather subjective with muscle pain, lower back injuries, and mental disorders being the most common reasons why individuals have to file for benefits.
It has also been shown that the number of cases is going up as the unemployment rate goes down. Much of this is being attributed to the aging demographic. It is also said that the recent economic situation has played a role as well. The economic situation has led individuals who qualify to go ahead and apply for benefits rather than trying to find another job that is going to possibly further irritate their disability.
In 2012, Minnesota ranked 29th among the states in the total number of Social Security Disability recipients. A total of 60,000 residents have filed their applications or already been through the review process in order to continue receiving their monthly benefit.
Because of the issue with the funds running out, legal firms that advertise their Social Security Disability services on television came under scrutiny with the House Oversight and Government Reform Subcommittee on Energy Policy, Health Care and Entitlements blaming some of the influx of applications on those advertisements. Nonetheless, the advertisements are simply a way of informing citizens of their rights when they have paid into the system and they have reached a point where they are no longer able to work, yet they still have a home to maintain, bills to pay, and a family to care for.
We can help you get the Social Security Benefits you deserve Call us on: 507-779-7529 or email: [email protected] to schedule a FREE consultation.