The Social Security Administration (SSA) is reportedly considering major changes to the job and age criteria used to determine disability eligibility. These adjustments could result in nearly 750,000 Americans losing access to Social Security Disability Insurance (SSDI) benefits.
According to an analysis by the Urban Institute, this would represent one of the most significant overhauls of the disability system in its history. The proposal could shrink the SSDI program and especially affect older workers who rely on disability benefits.
Possible Impact on Beneficiaries
Urban Institute senior policy fellow Jack Smalligan stated that the changes could reduce SSDI eligibility by up to 20% overall and by as much as 30% among older adults.
If the SSA implements just a 10% reduction in eligibility, projections show that over a 10-year period:
| Impact Area | Estimated Effect |
|---|---|
| People losing eligibility | 500,000 |
| Widows and children affected | 80,000 |
| Temporarily losing eligibility | 250,000 |
| Estimated benefits not released | $82 billion |
These numbers could climb higher if the rule changes are more severe than expected.
Background and Timing of Proposed Rules
The proposed adjustments were first explored during the Trump administration and may be finalized by the end of this year, according to the Urban Institute.
While the SSA has not commented on the matter, the report warns that further tightening of the program could increase poverty, hardship, and even mortality rates among vulnerable populations.
How Age and Job Criteria Shape Eligibility
The SSA currently acknowledges that older individuals have greater difficulty adapting to new jobs, which influences how disability claims are assessed.
Smalligan explained that people denied disability benefits in their 50s rarely return to work. Instead, they might use up retirement savings and apply for early Social Security at age 62, locking themselves into lower monthly payments compared to waiting until full retirement age.
He emphasized that these changes would mainly impact new applicants, although it is unclear how they might affect current beneficiaries.
The proposed SSDI eligibility reforms could profoundly reshape how disability support is awarded in the U.S. While aimed at reducing costs and tightening criteria, experts warn the changes may leave hundreds of thousands without critical income, especially older Americans already struggling to stay afloat.
Any decision on this issue will have long-term consequences for the nation’s disability safety net.
FAQs
How many people could lose SSDI benefits if these changes are implemented?
If eligibility is reduced by 10%, an estimated 500,000 people could lose SSDI benefits within a decade.
Why are older workers more vulnerable to these changes?
Older workers have a lower capacity to transition into new jobs, making them more dependent on SSDI if they become disabled.
When could the SSA announce these changes?
The SSA could finalize the new rules by the end of this year, though no official announcement has been made yet.
