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Retirement Planning > Social Security

Reason 1,023 for offering disability insurance

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We’ve all known about the probability of needing, and using DI. Now there are more hard numbers to back it up.

The Associated Press reports Social Security officials say they expect an even larger spike in new disability claims than they had expected, as aging, injured baby boomers tumble out of the work force and need income.

According to the wire service, officials estimate they’ll receive 3.3 million new disability claims over the next year, up from their previous estimate of 3 million projected just five months ago.

“The wave of new applications comes just as officials were making progress in curbing a massive backlog of disability appeals cases, which has plagued the agency for years,” the AP writes. “Also adding to the problem are recent moves in at least 10 states to furlough hundreds of employees that process initial benefit claims.

“Since October, the number of people waiting to have a claim processed has jumped a stunning 30 percent, from about 556,000 eight months ago to more than 736,000 in July.”

“We’re going to be moving backwards this year, the question is how much,” Social Security Commissioner Michael Astrue said in an interview. “The trend line isn’t good.”


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