Question

Research and discuss whether Social Security Disability is sufficient income for Americans who are currently on it. Based on your research, what is the outlook of the Social Security Disability Income system for the United States? How does this personally make you feel about Disability Income Insurance?

Answer 1

A) Social Security Disability is sufficient income for Americans

Abstract

Social Security Disability Insurance (SSD or SSDI) is a payroll tax-funded federal insurance program of the United States government.

It is managed by the Social Security Administration and designed to provide income supplements to people who are physically restricted in their ability to be employed because of a notable disability (usually physical).

SSD can be supplied on either a temporary or permanent basis, usually directly correlated to whether the person's disability is temporary or permanent.

Social protection systems play a key role in meeting the specific needs of persons with disabilities with regard to income security, social health protection and social inclusion.

Disability benefits are one of the elements of social protection systems that explicitly address disability-related needs and provide income support to persons with disabilities and their families

For you to be considered to have a disability by Social Security's definition, your medical condition must significantly limit your ability to do basic work activities - such as lifting, standing, walking, sitting, and remembering - for at least 12 months.

Below are the primary factors in higher rates of SSDI program usage.

• Population growth .
• Aging of the baby boom generation
• Growth in women's labor force participation
• Increase in Social Security's full retirement age from 65 to 66

In December 2014, the SSDI program insured approximately 10.9 million beneficiaries including disabled workers and their spouses and children

From future outlook prospective In April 2019, the Social Security Trustees reported that under current law,, The DI Trust Fund reserves will become depleted in 2052 and the OASI Trust Fund reserves will become depleted in 2034.

B) Future Outlook of Social Security Disability Income System

The share of the U.S. population receiving SSDI benefits has risen rapidly over the past two decades, from 2.2 percent of adults age 25 to 64 in 1985 to 4.1 percent in 2005.

According to David Autor and Mark Duggan, aging and changes to the overall health of the U.S. population have had a small effect at most on SSDI usage.

But the loosening of the screening process which is directed the Social Security Administration to relax screening of mental illness, place more weight on applicants' reported pain and discomfort, consider multiple non-severe ailments to be disabling, and give more credence to medical evidence provided by the applicant's doctor. These changes had the effect of increasing the number of new SSDI awards and shifting their composition towards claimants with low-mortality disorders such as mental illness and back pain.

In recent days there is rising value of SSDI benefits relative to what recipients would have earned from employment.

As per the economic survey - a low-income older male SSDI recipient in 1984 would have received from benefits about 68% of the income he would have earned by working; by 2004, due to increasing income inequality, the same man would have received from SSDI benefits 86% of what he would have earned through employment.

Main drawback of this SSDI program is that it often functions in practice as an insurance program for unemployable people and there is no direct benefits to people who are currently employed with organization

C) Persona opinion about the Disability Income Insurance (SSD)

Personally I feel that Disability income insurance provides supplementary income in the event an illness or accident results in a disability that prevents the insured from working at their regular employment.

From benefits point of view amount are usually paid monthly so the insured can maintain a comparable standard of living and pay recurring expenses such as monthly pay cheque and house rent etc..