Showing posts with label Baby Boomers. Show all posts
Showing posts with label Baby Boomers. Show all posts

Jul 3, 2013

Soaring Disability Payments?

     We keep hearing that Social Security disability benefit payments are soaring. They're going through the roof. It's ruinous how rapidly disability payments are rising. Funny thing about that. It's not happening, at least not anymore. Below is a chart showing Disability Insurance Benefits payments over the last two years. I know the chart contains some extraneous information but I couldn't copy just the month and the total benefit payments. Notice that benefit payments have gone up in the last two years by 8%, which is certainly significant but hardly a disastrous increase considering the aging of the baby boom population and considering the 3.6% cost of living adjustment at the end of 2011 and the 1.7% cost of living adjustment at the end of 2012. More interesting is that the increase in benefit payments has ground to a halt over about the last year. We seem to be near stasis. This is exactly what the actuaries have been predicting. Once the number of baby boomers reaching full retirement age, making them no longer eligible for disability benefits, started equaling the number reaching their prime years for disability, the boom in disability claims would be over. Well, it's happened. It's right there in the numbers you see below. Total benefit payments in June 2013 were less than they were nine months earlier in September 2012, despite the intervening cost of living adjustment.
DI Payment Summary
(in millions)
Year Month
paid
Total
benefit
payments a
Cyclical payments b Medicare
premium
deductions
All other
payments
Total Cycle 1Cycle 2 Cycle 3Cycle 4
2011 Jul $10,897 $9,116 $5,168 $1,305 $1,303 $1,341 $430 $1,351
2011 Aug 10,761 9,133 5,171 1,309 1,307 1,345 430 1,198
2011 Sep 10,818 9,169 5,189 1,315 1,313 1,352 433 1,216
2011 Oct 10,758 9,207 5,206 1,322 1,320 1,359 433 1,118
2011 Nov 10,638 9,235 5,222 1,326 1,324 1,363 435 967
2011 Dec 10,970 9,337 5,292 1,337 1,334 1,374 434 1,199

2012 Jan 11,278 9,668 5,459 1,391 1,388 1,429 428 1,182
2012 Feb 11,279 9,693 5,472 1,395 1,393 1,433 429 1,156
2012 Mar 11,522 9,730 5,490 1,401 1,398 1,441 438 1,354
2012 Apr 11,376 9,767 5,508 1,407 1,404 1,447 434 1,175
2012 May 11,247 9,811 5,529 1,415 1,412 1,455 436 1,000
2012 Jun 11,625 9,816 5,531 1,416 1,414 1,455 442 1,367
2012 Jul 11,434 9,841 5,539 1,422 1,419 1,461 442 1,152
2012 Aug 11,124 9,849 5,542 1,424 1,421 1,462 442 832
2012 Sep 11,847 9,846 5,542 1,423 1,420 1,461 449 1,551
2012 Oct 11,139 9,889 5,562 1,431 1,428 1,469 442 807
2012 Nov 11,219 9,894 5,568 1,430 1,428 1,468 449 876
2012 Dec 11,788 9,966 5,627 1,435 1,431 1,472 445 1,378

2013 Jan 11,583 10,079 5,676 1,456 1,453 1,494 471 1,033
2013 Feb 11,590 10,076 5,677 1,455 1,451 1,493 472 1,041
2013 Mar 11,827 10,089 5,684 1,456 1,453 1,496 475 1,263
2013 Apr 11,572 10,106 5,695 1,458 1,455 1,498 470 997
2013 May 11,786 10,136 5,716 1,460 1,458 1,502 471 1,179
2013 Jun c 11,734 10,136 5,717 1,460 1,457 1,501 475 c 1,123