Insolvency on the Horizon for Social Security's Disability Trust Fund

10,978,040: Americans receiving federal disability benefits in May 2013

In May 2013, the disability trust fund for Social Security and Medicare provided federal disability insurance to 10,978,040 Americans. However, the program will encounter hurdles in the future if no changes are made. The trustees of the Social Security and Medicare programs predict that the disability trust fund will run out of money in 2016 unless revenues increase or payouts fall.

The disability trust fund has been running at a deficit since 2009 but has been able to make payments by drawing down a surplus built during the 1990s. If insolvency occurs, the benefit payments won't cease but will have to be cut by 20% to 30%. Lawmakers can avoid the cuts by either raising the payroll tax or reallocating money going into other Social Security programs.

For more on the economy, read the weekly update from Chief Investment Strategist Russ Koesterich.

Source: WSJ, "Number of the Week: Disability Fund Three Years From Insolvency," 6/1/2013

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Prepared by BlackRock

Delivered courtesy Joel W. Grams, CRPC®, CLTC,

Registered Representative, Financial Planner, 212 Capital Group

38 Main Street Suite 360, Westlake Ohio 44145

(440) 835-4501 Ext 17, jgrams@212capitalgroup.com

The foregoing discussion is general in nature and not intended as specific advice. New England Financial nor its representatives are engaged in rendering tax, accounting or legal advice. A qualified professional should be consulted regarding the effect of such considerations on the matters covered in this publication.

For information on New England Financial insurance or other financial products and services, please contact

 Joel W. Grams, CRPC®, CLTC, Registered Representative, Financial Planner with /New England  Financial 38 Main Street Suite 360, Westlake, OH 44145, at (440) 835-4501 ext. 17, jgrams@212capitalgroup.com

www.212capitalgroup.com              

.

New England Financial is the registered mark for New England Life Insurance Company (NELICO) Boston, MA 02116. Securities and investment advisory services offered through New England Securities, Corp. (NES)(member FINRA/SIPC) a Registered Investment Advisor. NELICO and NES are MetLife companies.

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