The Social Security disability trust fund is estimated to be depleted by the last quarter of 2016, putting the funds 11 million disabled workers depend on in serious jeopardy, according to CMS' 2015 annual report on the financial condition of Medicare and Social Security.
Disability insurance is critical to most beneficiaries, as most were averaging just over a $42,000 annual income when they became disabled. Average benefits are $14,000 per year.
The trustees of Social Security said after the fund is empty, benefits paid to eligible recipients would be cut by 19 percent because revenues, predominantly from payroll taxes, would only be able to cover 81 percent of scheduled benefit payments.
The trustees said in the report the depletion of funds from the Social Security disability trust is only the first of "larger financial imbalances facing Social Security as a whole, as well ask Medicare." They predict that combined, Social Security's retirement and disability trust funds would be depleted by 2034. After that, income to the trust fund would be adequate to pay about three-fourth of scheduled disabled beneficiaries for the following 50 years.
The trustees also predict Medicare's hospital insurance trust funds would be depleted in 2030, consistent with projections last year.