Allsup analyzes impact of recent Social Security Trustees Report and what it means for beneficiaries
T.J. Geist, Principal Advocate at Allsup
Belleville, Illinois, May 07, 2024 (GLOBE NEWSWIRE) — The Disability Insurance (DI) Trust Fund combined with the Old-Age and Survivors Insurance (OASI) Trust fund, have gained one year in solvency, according to the annual report of the Social Security Board of Trustees. The report highlights several financial challenges for U.S. social insurance programs, though Social Security Disability Insurance (SSDI) benefits solely will be payable at 100% through 2098, according to Allsup, the nation’s premier provider of SSDI representation services. This stability underscores the importance of effective administrative strategies and evolving demographic trends, highlighting the critical need for expert guidance in navigating the complexities of SSDI claims.
“Increased wage growth and low unemployment are factors in this improvement for the combined trust funds,” said T.J. Geist, Principal Advocate at Allsup. “The disability incidence rate for the U.S. workforce has declined significantly to 4.5 per thousand from 4.8 per thousand, which improves the outlook for the disability fund, in particular.” In contrast, the OASI Trust Fund, on its own, is projected to reach depletion by 2033. Given the contrasting financial trajectories of the Social Security trust funds, the services provided by Allsup are more critical than ever. “While disability applications are expected to rise, they are not expected to increase at the same rate as previously anticipated,” Geist explained. “This still means several hundred thousands of Americans experiencing disability who will need the vital combined monthly income and return-to-work services that are available through SSDI.”
The combined asset reserves of OASI and DI trust funds are projected to have enough revenue to pay scheduled benefits at 100% through 2035, and thereafter, pay them at 83% of scheduled benefits. Asset reserves of the combined funds declined by $41 billion in 2023 to a total of $2.788 trillion. Costs of the social insurance programs began to exceed total income starting in 2021. Medicare funds forecast small surpluses in 2023 and 2024, but face deficits starting in 2025 due to rising beneficiary numbers and healthcare costs.
The Trustees urged immediate legislative action to address the anticipated shortfalls and secure the programs’ future. The report points to several reasons for the changes in the financial projections, including an aging population and lower birth rates. Economic updates, such as higher expected labor productivity, also affect these forecasts. These factors combined have strengthened the financial health of the DI Trust Fund, demonstrating the complexity and adaptive nature of managing such essential Social Security resources.
“The enduring stability of the Disability Insurance Trust Fund reflects the substantial effects of ongoing administrative enhancements and demographic shifts,” Geist said. “With these changes, the role of Allsup becomes even more critical as we provide the expertise necessary to navigate this evolving landscape, ensuring that our clients can successfully claim the benefits they have paid into.”
Allsup experts understand the nuances of the disability claims process after 40 years and 400,000 successfully approved customers. Individuals who choose Allsup gain a powerful ally equipped to advocate for their rights and secure the benefits they need and earned while working.
For more information about applying for SSDI benefits, filing your appeal if you were denied, or to see if you are eligible, visit FileSSDI.Allsup.com or call 1-800-678-3276. Be sure to ask about our Disability Financial Solutions for SSDI customers. Allsup helps more claimants get approved at the application level than any other representative nationwide.
ABOUT ALLSUP
Allsup and its subsidiaries provide nationwide Social Security disability, veterans disability appeal, disability financial solutions, return to work, and healthcare benefits services for individuals, their employers and insurance carriers. Allsup professionals deliver specialized services supporting people with disabilities and seniors so they may lead lives that are as financially secure and as healthy as possible. Founded in 1984, the company is based in Belleville, Illinois, near St. Louis. Learn more at Allsup.com and @Allsup or download a free PDF of our e-book, Applying for Social Security Disability Insurance: Getting It Right The First Time.
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- T.J. Geist, Principal Advocate at Allsup
CONTACT: Rebecca Ray Allsup (618) 236-5065 R.ray@allsup.com Laura C. Sala Allsup (618) 409-7079 L.sala@allsup.com
