Income at Risk: Unemployment Slows For Some, But Not
People with Disabilities, Allsup Finds
Rising Social Security
disability applications begin to stabilize; financial strains
continue for many people with disabilities and their
families
Belleville, Ill. - April 20,
2011 - During first quarter 2011, the unemployment rate for people
with disabilities continued to significantly outpace the
unemployment rate for other workers, according to the quarterly
Allsup Disability Study: Income at Risk. Allsup is a
nationwide provider of Social
Security Disability Insurance (SSDI) representation and
Medicare services.
The Allsup study shows people with disabilities experienced an
unemployment rate approximately 60 percent higher than people with
no disabilities for the first quarter 2011. Specifically, the
unemployment rate for the first quarter averaged 14.9 percent for
people with disabilities, compared to 9.3 percent for others,
according to non-seasonally adjusted data from the U.S. Bureau of
Labor Statistics (BLS).
Since the BLS began reporting unemployment rates for people
with disabilities nearly three years ago, the lowest unemployment
rate reported for people with disabilities was 11.1 percent,
recorded in November 2008. In comparison, the highest unemployment
rate for people with no disabilities during this time period topped
out at 10.4 percent in January 2010.
"People with disabilities often face a significantly greater
challenge in locating and maintaining employment," said Paul Gada,
personal financial planning director for the Allsup Disability Life
Planning Center. "Their health conditions may make it difficult to
continue working for extended periods of time, causing them to come
in and out of the job market. As their conditions worsen,
ultimately, hundreds of thousands find it is impossible to return
to the work force."
The BLS also reported that 45.5 percent of those individuals
unemployed in March had been jobless for 27 weeks or more. This
compares to 44 percent who had been jobless for 27 weeks or more
during March 2010.
Number of New SSDI Claims Begins to
Stabilize
The Allsup Disability Study: Income at Risk also
shows that during first quarter 2011, the number of people with
disabilities unable to work and applying for SSDI increased to
720,119, up just 1 percent compared with first quarter 2010. An
estimated 1.8 million SSDI claims are pending in the Social
Security review process with an average cumulative wait time of
more than 880 days.
"It's not easy to apply for Social Security disability
benefits and many people experience significant financial hardship,
including bankruptcy and foreclosure, while waiting years to
receive their SSDI benefits," Gada said.
Knowing if and when to apply for SSDI benefits are two
important and complex decisions facing people with serious health
conditions. "People with disabilities often wait longer than they
should because they don't understand the guidelines and their
eligibility, and they haven't sought the professional
representation that could get them their benefits more quickly,"
Gada said. "This can prolong their wait for the income provided by
SSDI and add to their financial burdens."
On the flipside, other individuals may be applying for Social
Security benefits without meeting the guidelines. This further
contributes to the delay experienced by those who do qualify for
benefits.
SSDI Guidelines and Process
Generally, applicants are considered disabled by the Social
Security Administration if:
- They cannot do the work they did previously;
- They cannot do any other work because of their disability; and
- Their disability has lasted or is expected to last at least one year, or result in death.
To qualify for SSDI, a person also must have worked and paid
into the program (via FICA payroll taxes) for five of the last 10
years and be under retirement age. Studies show that a 20-year-old
worker has a 3-in-10 chance of becoming disabled before reaching
retirement, according to the Social Security Administration.
However, only a small percentage of people with disabilities
qualify for SSDI.
Gada noted that the SSDI guidelines are intentionally
stringent and the application process requires an extensive amount
of paperwork. This includes completing an initial disability
insurance application and, in most instances, a detailed
activities of daily living questionnaire. Information is needed on
the person's work history and the impact of the disability on his
or her day-to-day activities. A doctor must verify information and
additional medical exams may be required if there is not enough
information to make a decision.
"SSDI is intended to be a financial safety net for people who
have paid into the system and have serious, long-lasting
disabilities that prevent them from working. For these individuals,
it truly is a lifeline, providing monthly benefits as well as
earlier access to Medicare and protection for their retirement
income," Gada said.
Individuals uncertain of their eligibility for disability
insurance benefits can contact the Allsup Disability Evaluation
Center at (800) 279-4357 for a free evaluation.
Allsup also provides free financial resources and tools to
help people with disabilities better manage their finances while
awaiting SSDI benefits. This includes information on establishing a
budget, managing debt and healthcare costs, and learning about
resources to better address financial issues such as bankruptcy and
foreclosure. These resources are available online at MyFinances.Allsup.com.