by Charles Blahous
e21 – Economic Policies for the 21st Century
August 04, 2014
Social Security’s Disability Insurance (DI) Fund faces depletion in 2016. DI, which makes payments for disabled workers and their dependents, will have to be changed soon or else suddenly drop disability payments by 19 percent when funding runs out in the fourth quarter of 2016. The problem reflects an excess of obligations to those already in the system, not any inadequacy of contributions by future workers. Younger generations will actually pay far more into the system than they will ever get out of it. The only way to prevent these net income losses – and to save SSDI – is to slow benefit growth for those already in the system.