How Important Is Social Security Disability Insurance to U.S. Workers?

“[The authors] reported the prevalence of Disability Insurance (DI) benefits, benefit amounts, the share of predisability earnings replaced by DI benefits, and family incomes and poverty rates for beneficiaries. Comparisons with nonbeneficiaries were generally made separately for younger and older adults, because DI beneficiaries tend to be older than the general population and incomes generally increase with age” (p.1). (Abstractor: Author)

“Many DI beneficiaries live in poverty. DI payments account for the majority of family income for nearly half of all beneficiaries and more than two-thirds of unmarried beneficiaries. However, benefit checks are modest and, on average, replace no more than half of what beneficiaries earned before they entered the program. As a result, family incomes for most beneficiaries fall well below the average for nondisabled Americans" (p.1). "Efforts to address (SSDI's) financing problems should recognize the crucial role that Social Security plays in the financial lives of Americans with disabilities, among the nation’s most vulnerable citizens" (p.10). (Abstractor: Author)

• Last Updated:
• Created:
• Resource Publication Date: 2013
• Author(s): Favreault, Melissa M.; Johnson, Richard W.; Smith, Karen E.
• Organizational Author(s): The Urban Institute Program on Retirement Policy
• Funding Source: Urban Institute
• Resource Availability: Publicly available
• Posted by: Wesley Peterson
• Posted in: Workforce System Strategies