Social Security Disability Claims on the Rise

December 2009

As people try and survive financially after losing their jobs, they have been turning to Social Security Disability benefits for support. This has created an unexpected surge in applicants, and industry insiders say the system is struggling to keep up.

According to the Social Security Administration, new claims for disability benefits rose almost 17 percent nationwide in fiscal year 2009, to 3 million. Claims are expected to rise another 10 percent in fiscal year 2010, to 3.3 million. Approximately 12 million Americans received disability benefits in fiscal year 2009, according to the most recent numbers from Social Security.

Some say that the Social Security system is being overwhelmed, and this is leading to even longer waits for claims to be settled. In some parts of the country, applicants wait years for a decision, and claims are often denied for those who have recently worked. The Social Security Commissioner said that the administration has a much lower allowance for people whose claims appear to be economically-motivated.