Different Ability

It may not be the next political crisis. But it’s coming.

Disability. The Federal disability trust fund is expected to run out of money by 2016. SSDI has been growing dramatically in recent years. There are now 14 million men, women, and children that receive a monthly disability check from the Federal Government. And the payroll tax that pays into the trust find can’t keep up. The two big disability programs, including health care, cost $260 billion per year.

This is a crisis that just keeps coming. The government knows this program is running out of money. They predicted that it would exhaust its surplus in 2016 when they changed the law back in 1984. Back then, that was 32 years into the future. Today, the future is now.

Changes in the economy and the law now mean that one in four working-age adults collect disability in some parts of the country. Chances are, politicians will vote to just merge this program with regular social security. So: not to worry, right?

Until that program goes broke—in 2032.

Douglas R. Tengdin, CFA

Chief Investment Officer

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