Trump Considers Cutting SSDI Benefits
We are currently living in tough financial times and the president may be making things even worse soon, especially for a vulnerable segment of the population.
The Trump administration is reportedly considering cutting disability benefits for low-income and older Americans by as much as 20%. This proposal could impact hundreds of thousands of people nationwide.
The initiative is part of a broader effort to “streamline” the Social Security system by reducing staff, tightening eligibility rules, and scaling back payments, all under the banner of saving money and curbing alleged fraud.
The Social Security Disability Insurance (SSDI) program is now a primary target. Traditionally, the Social Security Administration (SSA) has given special consideration to older applicants, recognizing that age often makes it harder for them to find new employment after an injury or disability. However, the proposed changes would remove age as a qualifying factor or raise the age threshold to 60, significantly altering how claims are evaluated. Officials are also reviewing what medical conditions should count as disabling, potentially narrowing the list.
Supporters of the proposal argue that Americans are living longer and healthier lives and can remain in the workforce beyond the traditional retirement age. But critics say this perspective ignores the fact that millions of older Americans work in physically demanding, low-paying jobs that take a toll on their health well before retirement.
Experts say these changes could leave many vulnerable workers behind. Stricter SSDI rules could push thousands of older Americans into poverty. Others would be forced to claim early Social Security retirement benefits, which would permanently reduce their monthly payments by as much as 30%.
Processing times are already lengthy. Many applicants wait up to five months for SSDI approval. Approval will no doubt take even longer with the government shutdown and 7,000 SSA staff positions cut. Each claim requires detailed medical records and employment history, and nearly two-thirds of first-time applicants are denied due to strict standards or incomplete evidence. Appeals can take more than a year, discouraging many from continuing.
By 2026, the SSA plans to use a new database identifying jobs applicants could theoretically perform regardless of age. Ultimately, while the proposed SSDI changes aim to save government costs, they could force many older Americans to shoulder a heavier financial burden during their most vulnerable years.
Whether or not these changes move forward, experts urge Americans to prepare for greater financial uncertainty. Those approaching retirement should consider long-term strategies like converting a traditional IRA into a Roth IRA, which can provide tax-free income and cushion savings against potential benefit cuts.
Learn More About Social Security Disability Benefits
SSDI benefits are a lifeline for those who are disabled and unable to work. Cutting these benefits will no doubt lead to poor outcomes for those affected.
A White Plains Social Security Disability lawyer from The Law Office of Michael Lawrence Varon can assist you. We have the skills and knowledge to effectively handle your case. To schedule a consultation, fill out the online form or call (914) 228-1770.
Source:
moneywise.com/news/top-stories/trump-admin-eyes-slashing-disability-benefits-for-older-americans-by-up-to-20-heres-what-that-could-mean-for-you
