There is always talk about how the Social Security system is not equipped to handle the demands being placed upon it. This has been a discussion for many years by lawmakers in New York and across the country. Social Security Disability Insurance is just one portion of the whole program. Funds for each part of the Social Security program come from different places. Some are more sustainable than others. According to the American Bar Association, funding for SSDI comes from payroll taxes and it is no longer meeting the current needs.

Both SSDI and retirement benefits come from the taxes you pay on every paycheck. However, there are more people claiming benefits, which is taxing the system. Workers are not making enough money to pay out all these benefits. The account that holds this money is not allowed to go into the negative, which means there has to be a change before it gets to this point.

Obviously, there are two options to fix the situation. A raise in payroll taxes is something nobody wants, but it could help in the short-term. The other option is to cut or reduce benefits. This is a difficult decision because many people who get the benefits rely on them as their sole income. It is already not enough to sustain a person at a reasonable level of living.

The problem is only going to get worse as a large portion of the population is about to reach retirement age. Once they do, the system will be unable to manage all the payments. This information is for education and is not legal advice.