Tuesday, July 28, 2015
Washington Post reminds us how SSDI can affect entire Social Security program; same FICA tax pool
The Washington Post has a very useful editorial Tuesday discussing how funding for Social Security SSDI insurance works, link here.
Many people don’t realize that their FICA taxes support both “old age” (for lack of a better word) retirement (starting possibly at 62, with political pressure to keep on increasing full and early retirement ages) and disability insurance payments, which hopefully most workers never use.
SSDI payment loads may have increased partly because of expanded workforce (women), longer careers, but also lax regulations in some areas. But increasing the portion paid for SSDI can mean that the trust fund for retirement gets in trouble even sooner.
I think that the solvency of the Social Security Trust Fund over time would be a good topic for a Vox Media “Card Stack”. I tweeted them this idea recently. None of this involves SSI, which is a completely separate program.