Washington insiders have suggested that Social Security Disability benefits cuts are likely on the way for 2016. Cuts to the Social Security disability program is often discussed. However, in recent months, the future for these benefits has been a serious question. The results for the annual review of the program show danger to the program in 2016.
The Cuts
In 2015, the average amount received for disability benefits was $1,165 per month. The latest version of the Social Security trustees report suggests that the disability insurance trust fund will run out of money in 2016 and is in need of immediate attention. In absence of any attention, those receiving disability benefits could see close to a 20 percent decrease to their payments by the end of 2016. Short-term actions are being taken, the future of the program is still very much in the air.
Preparing For What’s Ahead
These proposed cuts would affect close to 10.9 million Americans who receive disability benefits. The decrease in disability insurance presents a frightening future to those who rely on disability benefits to get by. The 20 percent decrease in benefits will require careful financial planning on behalf of participating families. How any future cuts will impact those who are currently applying for benefits is yet to be determined.
In 2016, with the elections on the way, long-term solutions could be proposed. The pace of the election could also delay talk of permanent Social Security reforms. If you are receiving Social Security disability or are applying, it is in your best interest to keep up with the continuing presidential debates.
