There are a lot of misconceptions surrounding the Social Security system. Here are four common myths and the truth about how...Read more
Increasing the Retirement Age Could Drive up Disability Applications
- June 10th, 2014
To ensure Social Security's long-term solvency, the government is looking at many options for saving money. One of these options is to increase either the early retirement age or the full retirement age, or both. However, increasing the retirement age may swell the number of people who apply for disability benefits, according to a report by the Government Accountability Office (GAO).
Currently, the early retirement age is 62 while the full retirement age is 67. If you retire early, you will receive reduced monthly benefits for the rest of your life. Meanwhile, Social Security Disability Insurance pays cash benefits to people who are unable to work for a year or more because of a disability. Benefits continue until you are able to work again on a regular basis, or until you reach retirement age.
Local Elder Law Attorneys in Ashburn, VA
Margaret A. O'Reilly, PC
Margaret A. O’Reilly is an estate planning and elder law attorney with over thirty-five years of legal experience. Attorney O’Reilly graduated from Duke University with a degree in psychology, and received her law degree from Northeastern University School of Law in Boston, Massachusetts. For over 15 y...
Farr Law Firm
In practice since 1987, Fairfax Attorney Evan Farr is widely recognized as one of the leading Elder Law, Estate Planning, and Specials Needs attorneys in Virginia and one of foremost experts in the Country in the field of Medicaid Asset Protection and related Trusts. Evan Farr has been quoted or cited as an expert by n...
Law Offices of John L. Laster
John Laster is a lawyer licensed to practice in Virginia, Maryland and the District of Columbia. He limits his practice to wealth transfer planning, trusts, wills, powers of attorney, health care decision-making issues, estate administration and related tax, elder law and disability concerns. Listed in The Best Lawyers...
The GAO analyzed data on older workers to discover the likelihood of whether workers who are near retirement age would be able to continue working if retirement was delayed. The GAO found that about one-quarter of workers age 60-61 (from 1998 2008) reported a work-limiting health condition and about two-thirds reported having a job that is physically demanding. Also, workers who might have difficulty working to an older retirement age have less education and lower household income than those who do not report health limitations.
The GAO concludes that raising the retirement ages could increase the number of applications for disability benefits because some workers with disabilities could apply for disability benefits instead of continuing to work until they reach retirement age. In addition, raising the full retirement age would reduce benefits for workers who retire early, creating a financial incentive to apply for disability benefits, which are not reduced.
The report gives some policy options for supporting older workers, including changes to unemployment insurance, workers' compensation benefits, and modifying disability benefits, but notes that these would be difficult to implement and have a high cost. To read the full report, click here.
To learn more about Social Security benefits, click here.
For more legal information and assistance for those with special needs, visit our SpecialNeedsAnswers Web site at www.specialneedsanswers.com. While some ElderLawAnswers attorneys practice in this area of the law, all attorneys listed on SpecialNeedsAnswers devote a significant part of their practices to working with individuals with special needs and with their families to plan for the future.
Last Modified: 06/10/2014