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Flat Benefit Would Repair SSDI Insolvency

Created on October 23, 2015

Flat Benefit Would Repair SSDI Insolvency


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Read the original report, "Improving Social Security Disability Insurance with a Flat Benefit," by Rachel Greszler.

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Over the next 10 years, a flat anti-poverty benefit would solve two-thirds of SSDI’s projected $246 billion shortfall. By using the flat benefit for all workers new to SSDI, the program would save $168 billion over the next decade with even greater savings to come when beneficiaries under the existing program are fully phased out.

Note: Shortfall for 2025 was estimated based on the average of the prior three years’ growth rates. Source: Social Security Trustees 2015 Annual Report and author’s calculations based on 2016 implementation of a flat benefit at the poverty level, applicable to all DI beneficiaries with initial awards in 2016 and later.

CHART 6 • BG 3068

Tags: social-security-disability-insurance, private-disability-insurance, federal-poverty-level