The 2019 annual report on the health of the Federal Old-Age and Survivors Insurance Fund (OASI) and the Social Security Disability Insurance Fund (DI) provided optimistic results last week.
Every year, the Board of Trustees of the OASI and DI funds provides Congress with a report on the income and costs of the two funds. The OASI and DI programs provide monthly benefits to retired workers, survivors of deceased workers, and disabled workers – as well as their families.
For those who either currently collect Social Security Disability benefits or are looking to apply, the new report adds another 20 years of consistent benefits.
DI benefits projected to remain steady for an extra 20 years
According to the report, the cost of the two Social Security programs likely will exceed their income beginning in 2020. The Trustees attribute the rise in costs to the “baby boomer” generation reaching retirement age. In previous years, OASDI reports predicted funds would deplete much faster.
Last year’s estimates predicted that the DI fund would run out of money in 2032. However, thanks to a decline in applications and reduced numbers of beneficiaries, the fund is now expected to stay solvent until 2052.
What would happen if funds run out?
Current funds running out would not mean that those collecting SSDI benefits would suddenly be out of luck. Individuals in the workforce would still be contributing through taxes on their paychecks. However, since researchers expect the number of individuals working to decline over the next ten to twenty years if funds run out beneficiaries would only get 91% of their usual benefits.
In the short term, those who qualify for disability benefits can expect a consistent payout. For more information about qualifying for Social Security Disability, visit the Social Security Administration’s website or consult with an attorney experienced in SSDI.