Social (In)Security and Disability

Recently, Bob wrote about the claims problems plaguing the Social Security Disability system. In Georgia alone, three quarters of those applying for benefits are initially rejected. Some will probably, ultimately, prevail, yet many will be shut out.

But that may not be the worst of it:

"...the Social Security Disability portion of the Old Age Security (OAS) “DI” trust fund is now in the RED on what would be defined as a “real world” cash flow basis. And, the shortfall must be borrowed by the Treasury in the credit markets as part of the growing budget deficit."

Ooops!

And the problem's growing. According to economic consultant Keith Forrest, over a million and a half folks have been added to the already burgeoning number of SSDI beneficiaries. That's an annual growth rate of about 4% per cent. Ouch!

The problem is the payroll tax for the benefit is less than 1%, and doesn't look to be growing by leaps and bounds. Now that's a recipe for disaster. But neither presidential candidate seems to be addressing this looming catastrophe.

Something to think about.

[Hat Tip: Unum]