Fewer People on Disability
With the economy improving, fewer people are on Social Security disability:
The number of Americans seeking Social Security disability benefits is plunging, a startling reversal of a decades-old trend that threatened the program’s solvency. It is the latest evidence of a stronger economy pulling people back into the job market or preventing workers from being sidelined in the first place. 1
The drop is so significant that the agency has revised its estimates of how long the program will continue to be financially secure. This month, the government announced that the program would not run out of money until 2032, four years later than its previous estimate last year. Two years ago, the government had warned that the funds might be depleted by 2023.
In addition to stronger economic growth, the drop reflects newly tightened standards for eligibility and the increasing number of baby boomers who are leaving the program because they have become eligible for Social Security retirement benefits and Medicare.
Fewer than 1.5 million Americans applied to the Social Security Administration for disability coverage last year, the lowest since 2002. Applications are running at an even lower rate this year, government officials say.
The economic news just keeps improving, yet you would barely know this from the media. More people are at work, and that is a good thing. Disability is a last resort, not the first one.