Social security was the product of President Roosevelt, who designed the program as an insurance system that would allow Americans to retired with an income or a state protected pension when they reached a certain age. The program itself was designed to be self-sustaining. In other words what a person put into it, during their employed years, was what they would get out of it at the end of their career, thereby guaranteeing that the program would continue to serve its usefulness for many years to come. Indeed, run properly social security was designed to be a program that would run its course through eternity.
However, in 2011 it started to come to the public’s attention that Social Security was not in fact as self-sustaining as we had been lead to believe. People started to hear that, unchecked, Social Security could be bankrupt as early as 2037; leaving everyone who had contributed to the system without the guaranteed retirement pension they were promised. Here are some important facts to know about social security and what it means to you.
According to the social security administration, the social security program started paying out more than it was bringing in in 2010. If current trends continue, payroll taxes will need to be raised by 28% in order to meet the shortfalls. This will need to occur no later than 2041.
A massive wave of baby boomers, over 80 million, are ready to retire putting the majority of the burden for sustaining social security will fall on the shoulders of 65 million members of generation X. The upside is that the boomers have created a decent size surplus in the system which, if managed properly, can make up the difference.
The federal government, which is trillions of dollars deep in debt, will not have the ability to pay these debts back. If the worst-case scenario happened and the United States defaulted on these loans, Social Security would become insolvent much sooner than 2041.
According to the Federal Government, however, while Social Security needs an overhaul there is no reason to call in the cavalry just yet.
“The fact that the costs for the program will likely exceed tax revenue this year is not a cause for panic but it does send a strong message that it’s time for us to make the tough choices that we know we need to make,” Commissioner of Social Security Michael J. Astrue said in an August 2010 news release that accompanied the Social Security’s Board of Trustees annual report on the Social Security program’s outlook.
The general consensus is that the U.S. government will not let the Social Security program fail. That does not mean, however, that the program will be maintained in its existing state. Legislators have already increased the eligibility date for receipt of full benefits from age 65 to age 67 for citizens born in 1960 or later. Additional increases in the age of eligibility, reductions in benefits, or both, are likely to be necessary in order to get the program back on economically solid ground.
Another option the government has is to raise taxes in order to fund the deficiency concerns of social security. With the boomers and other retired folk making up a large portion of the voting bloc, may politicians are afraid to touch the issue of social security and are content to kick the can down the road to an uncertain future. Former Speaker of the House Tip O’Neill referred to Social Security as the “third rail of politics. Touch it and you die!”
The bottom line is, the Federal Government has an obligation to provide people with the promised income when they retire. While this was never designed to make up 100% of income replacement, it is unlikely that the government will let the system fail completely. That being said, it is important to have the right representation and the right attorney’s in your corner as it becomes harder to get your social security paid out, especially if you are seeking Social Security Disability Insurance Benefits.
Social Security’s definition of “disability” is strict. As employed by the Social Security Administration, the term generally relates to your ability to work and earn income. The simple fact that you have a written statement from your physician stating that you are disabled does not mean that you qualify for regular disability benefits. Instead, to receive regular disability benefits you will have to prove a medically-determinable mental or physical impairment that prevents you from working for a year or that will eventually lead to your death.
Unfortunately for disabled persons in need, regular disability is one of the most complicated benefit programs offered under Social Security. The Social Security Administration applies specific guidelines for determining who qualifies for disability cash assistance. A knowledgeable DIB lawyer can answer your specific questions and offer guidance about your eligibility and preparing your claim.
Disparti Law Group, P.A. has experienced disability insurance benefits attorneys who are proud to have helped disabled individuals in Illinois obtain regular disability insurance and other disability benefits for more than 30 years. Whether you are in Chicago, Aurora, Crystal Lake, Joliet, Champaign-Urbana, Evanston, Oak Lawn, Wheaton, Bolingbrook, or elsewhere in Illinois, one of our Illinois DIB claims attorneys is ready to answer any questions you may have.
Contact an experienced social security insurance disability benefits attorney at Disparti Law Group, P.A., today. Call toll free at (800) 633-4091, or use our online contact form. Your initial consultation is free of charge. If we handle your case, we will represent you on a contingency fee basis. We receive payment only if we obtain benefits for you. Call today to get the process started!