The Center on Budget and Policy Priorities published a study conducted by the policy research group Mathematica showing the earnings of workers well before they applied for Social Security benefits and their earnings up to five years after they applied and were denied benefits. The results show how poor these people have become in subsequent years.
All of these people were denied disability benefits, but they were put into three different categories. The categories included people Social Security considered not impaired, severely impaired, but who could do past work, and those who were severely impaired, but who could do other work.
As you can see by the chart, of the people considered not severely impaired, over 60 percent had earnings six years prior to filing a claim. The percentage of people with earnings, who Social Security agreed were severely impaired, but who could do past work, was close to 90 percent and the percentage of people with earnings who were severely impaired who could do “other work” was close to 100 percent. The year Social Security issued denials on these claims, about 40 percent of all categories of people had earnings, but five years later 20 percent or less had earnings.
These numbers seem to indicate that despite Social Security’s ruling that they are not disabled, about 80 percent of these people were still unable to work and earn a living. Social Security issues denials to claimants who the agency considers not disabled and able to work. If this were true you would probably expect more than 20 percent of these people to go back to work and earn income, but that is not happening. Some might say that it is because these people don’t want to work and are just fine with being poor, but the more likely scenario is that these people are disabled and unable to work, but still denied benefits.
