Social Security disability trending toward lower program costs
Little changed in the most recent Social Security Trustees’ Report, which still shows a projected depletion of the Trust Funds by 2034, meaning a potential cut in benefits. However the Trustees did not adjust their assumptions regarding the Social Security Disability Insurance (SSDI) program, which is trending towards fewer people receiving benefits from the program, sparked by a reduction in the “allowance rate” (the fraction of applicants who are ultimately approved). And along with fewer SSDI recipients comes lower total disability program costs and, therefore, less total cost of the Social Security program. As this MarketWatch article by Alicia H. Munnell points out, the Trustees haven’t adjusted their projections for this changing trend in the disability program and thus could be overestimating future Social Security program costs. Click here to read more.