Graduates' Long-Term Financial Goals Should Include
Strong Safety Net
Chance for disability
highlights importance of Social Security Disability Insurance
program
Belleville, Ill. - May 18,
2011 - Planning for a disability is probably the last thing on the
minds of hundreds of thousands of young men and women
graduating from college this spring-or those already in the
workforce. If you are new to the work force, it's important to plan
for long-term financial security, including potential disability,
according to Allsup, a nationwide provider of Social
Security Disability Insurance (SSDI) representation and
Medicare plan selection services.
While it's natural to be filled with hope and excitement when
beginning new careers, there's a good chance statistically that
younger workers will have to deal with a work-stopping injury or
illness before they reach full retirement age. The Social Security
Administration (SSA) reports that a 20-year-old has a three in 10
chance of becoming disabled before reaching retirement. Many
younger workers may not realize that part of their Social Security
taxes go toward Social Security Disability Insurance. For those who
understand this benefit, there still are important questions to
consider. For example, will those benefits be enough, particularly
if you have a family to support?
"Just planning ahead financially is important," said Paul
Gada, Allsup's personal financial planning director. "If you are
thinking about this, you should also be thinking beyond your
current circumstances. Be aware that Social Security disability
income is just one part of a safety net that also includes employer
retirement plans and personal investments."
SSDI
is a federally mandated insurance program that taxpayers and their
employers fund through payroll taxes. It is designed to provide
monthly benefits to those who have experienced a severe disability
and can no longer work for 12 months or longer, or who have a
terminal condition.
Financial Plans That Consider
Disability
The environment surrounding employee benefits has shifted
dramatically. One example is retirement planning, which has
experienced a generational change from employer-paid pension
programs to 401(k) programs funded by employees and employers, in
some cases. More and more, financial preparedness falls on workers'
shoulders.
"Even with the current level of
Social Security benefits you earn through your job, this
probably won't be enough to sustain you financially when you no
longer work," Gada said.
It's a big help, he said, but you should look for other ways
to minimize financial hardship down the line. "Look into a
long-term disability insurance plan that you pay into now, and have
an emergency savings fund you truly don't touch except for
emergencies," he said.
Statistically speaking, 100 million people don't have an extra
safety net beyond SSDI, he said. When they stop working, it could
be years before they receive Social Security benefits. In the past
year alone, more than 1.8 million SSDI applicants were awaiting
review of their claims and disability appeals, according to
the SSA.
"This means they weren't receiving any money from Social
Security. In addition, the SSDI application process, from initial
application to final award of benefits, could take a year to two
years, or longer," Gada said. "If the hope of getting SSDI is your
only plan for income after experiencing a disability, you're going
to suffer financially, possibly a great deal."
There are a number of benefits to applying for Social Security
Disability Insurance, if it should become necessary. This includes
eventual eligibility for Medicare coverage and dependent
benefits.
For this reason, it's important to include SSDI in long-term
financial plans by being fully aware of the program and knowing how
best to go about getting these benefits if and when they're
needed.
Find more information in Allsup's Online Guide to Personal
Finance, which is designed to help people with disabilities and
their families outline a financial blueprint.
"Allsup representatives help people of all ages determine
their next steps, especially in the face of a severe disability
that prevents them from working," Gada said. "Our goal is to build
awareness for people and their families, including young workers
and college graduates, about the need to have a solid financial map
for their futures, no matter the experiences they encounter."
For many workers, this is the opportune time to evaluate their
preparedness for a disability, especially since May is
Disability Insurance Awareness Month.
"You don't have to-and in fact should not-wait until you're
forced by injury or illness to quit working before you seek help,"
Gada said. "Start right now by making careful plans that will help
ensure you and your family are protected financially if, down the
road, something should happen that ends your working days. Seek out
professional help in making the right choices."
Find more information on Allsup.com about the Social Security
Disability Insurance program. Those who have questions about SSDI
eligibility can receive a free disability evaluation by calling the
Disability Evaluation Center at (800) 678-3276.
ABOUT ALLSUP
Allsup is a nationwide provider of Social Security disability,
Medicare and Medicare Secondary Payer compliance services for
individuals, employers and insurance carriers. Founded in 1984,
Allsup employs nearly 800 professionals who deliver specialized
services supporting people with disabilities and seniors so they
may lead lives that are as financially secure and as healthy as
possible. The company is based in Belleville, Ill., near St. Louis.
For more information, visit www.Allsup.com.
| Contact: | |
| Rebecca Ray | Dan Allsup |
| 800-854-1418 ext 65065 | 800-854-1418 ext 65760 |