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

By | 2013-04-11T09:41:49+00:00 April 11th, 2013|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. –
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