If the next president serves two terms without addressing Social Security, the Disability Insurance Trust Fund would be exhausted by the time he or she leaves office.
The Old Age and Survivors Insurance Trust Fund, which provides benefits to 49 million beneficiaries, will be unable to pay benefits as scheduled by 2035.
Policymakers must address the problems facing Disability Insurance in a responsible manner that accounts for the challenges facing Social Security as a whole.
The trust fund is projected to be exhausted by the end of 2016, at which point program revenues would be insufficient to finance all scheduled benefits.
One of the recommendations of BPC’s Disability Insurance Working Group tries to address what many consider to be a problematic work disincentive in the program.
The trust fund is on course for insolvency next year. This deadline is a focus of policymakers and a source of concern for beneficiaries and their families.
Social Security is the bedrock of retirement security for most Americans. But to maintain that position, it needs to be modernized and put on more secure footing.
As Baby Boomers move out of the labor force and into retirement, the ratio of workers to beneficiaries will drop to roughly 2:1 by 2034.
The report emphasizes that before the end of 2016, just 18 months from now, the DI Trust Fund will be unable to pay beneficiaries the full amount due them.