Social security benefits that serve the purpose of insurance post retirement have become the absolute necessity for many of the workers in United States. Many people who were rendered unemployed after the economic downturn were forced to retire before they were willing to. Another reason is massive downsizing happening even in flourishing industries. The business is still in a state of flux and has not fully recovered and the jobs are not created either. This has put many workers in a big financial trouble. Majority of the workers who are unemployed are not even close to the early retirement age fixed by the federal government. But, these workers cited health problems to claim their disability benefits, in order to prevent their lives come to a grinding halt.
The growing concern is that those who retire before the early age and full term retirement age may not get full benefits under the social security act. They may continue to get fewer benefits till they attain full term retirement age. Another matter of concern is that these claims are not headed on time. Many of them are being denied. Initially 65% of the disability claims were denied giving rise to more number of appeals. Social security administration has hired more judges to hear to these appeals and has managed to bring down the time to resolve an appeal from 532 days to 390 days now.
In spite of these efforts, there are close to 700,000 pending hearings. There is no budget with the federal agencies to clear this backlog. Even the stimulus package given to the federal agency is not sufficient to clear the overwhelming claims. Every year social security administration is spending close to $800 million, yet the amount is not enough to meet the needs of many laid off and retired workers.
The budget cut on social security administration, has resulted in deferring the opening of 8 new offices in different states. Even the government headed by President Obama has failed to release more funds for covering the backlog claims. This will result in more time to hear the appeals of millions of workers. This has raised concerns among many of the potential claimants who want to claim their social security benefits due to disability. However, there is a ray of hope in trying to look for the new jobs considering the fact that economy is on a road to recovery.
The growing concern is that those who retire before the early age and full term retirement age may not get full benefits under the social security act. They may continue to get fewer benefits till they attain full term retirement age. Another matter of concern is that these claims are not headed on time. Many of them are being denied. Initially 65% of the disability claims were denied giving rise to more number of appeals. Social security administration has hired more judges to hear to these appeals and has managed to bring down the time to resolve an appeal from 532 days to 390 days now.
In spite of these efforts, there are close to 700,000 pending hearings. There is no budget with the federal agencies to clear this backlog. Even the stimulus package given to the federal agency is not sufficient to clear the overwhelming claims. Every year social security administration is spending close to $800 million, yet the amount is not enough to meet the needs of many laid off and retired workers.
The budget cut on social security administration, has resulted in deferring the opening of 8 new offices in different states. Even the government headed by President Obama has failed to release more funds for covering the backlog claims. This will result in more time to hear the appeals of millions of workers. This has raised concerns among many of the potential claimants who want to claim their social security benefits due to disability. However, there is a ray of hope in trying to look for the new jobs considering the fact that economy is on a road to recovery.
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