Younger Americans have a tendency to think that Social Security Disability benefits are something only older people have to worry about. However, many millennials may find themselves requiring disability benefits sooner than they think. According to the Social Security Administration, someone who starts working at the age of 20 has a 25 percent chance of needing disability benefits before age 67.
The reality is that many younger people suffer injuries and illness that require them to take time off work. Some of these people may never be able to work again due to permanent disability. Yet, statistics show that nearly 70 percent of people working in the private sector do not have long-term disability insurance meaning that they will have to depend on disability benefits. However, there is no guarantee that you will receive social security disability benefits. In fact, many claims for disability benefits are denied for a multitude of reasons.
Experts say that 65 percent of initial disability claims are denied and that many workers lack the 40 work credits required to qualify for these benefits. Work credits are earned based on your wages during the 10-year period before your disability. Generally, you can earn up to four credits per year (one credit per $1,300). It is also important to note that short-term disabilities are not covered by SSD. In other words, your disability must also last at least one year in order for you to qualify for benefits.
Even if you qualify for benefits, you may not receive them in a timely fashion. Those who have been approved will not receive benefits until they have been disabled for at least five months.
Social Security disability benefits can come in handy when you are out of work, but it can be hard to qualify for them. Young people may want to consider disability insurance to protect themselves in case of an emergency disability. If you do need to apply for benefits, sure your application includes all necessary information to speed up the approval process.
Source: NASDAQ, “Why Millennials Need to Worry About Disability and Social Security,” April 11, 2017