As is typical, when the economy is doing well less people file claims for Social Security disability benefits, and the reverse is true when the economy struggles. Social Security sees an increase in the number of people who file disability claims when the economy is struggling, but as the New York Times recently reported, the economy is doing quite well. This has correlated in less people filing disability claims.
Despite the fact that President Donald Trump has already taken credit for the improved economy, even though he has been in office less than two years, as you can see the Times indicates that the economy has been expanding for the last nine years, going back to 2009. Coincidentally, 2009 was the first year Barack Obama became president.
Regardless of who is responsible for the improved economy, it is good news for people who count on Social Security benefits and those who will count on Social Security benefits well into the future. Because less people are applying for disability benefits, the Social Security Trust Funds are doing better than expected and are now projected to last longer than previously thought. As fewer people continue to return to the workforce and expand the economy, the outlook for Social Security continues to improve. Below are some specifics of why less people are applying for and receiving disability benefits.
- The Baby Boom Generation continues to age and more of this generation who collected disability benefits are now transitioning to retirement benefits.
- People are more easily able to find jobs and employers who can accommodate people with disabilities because the need for employees is so great.
- Once again it is even more difficult to qualify for Social Security disability benefits. New guidelines and standards have been implemented to make it more difficult to prove someone is disabled.
