May is Disability Income Awareness Month.
OK, so we have thought about our monthly expenses and the size of the financial risk we might have if we become disabled. But now you are probably saying to yourself: “The chances of that happening are so low, I don’t have to worry about it.” Well take a look at these statistics from the Center for Disability Awareness:
- Just over 1 in 4 of today’s 20 year-olds will become disabled before they retire. (Social Security Administration, Fact Sheet March 18, 2011)
- Over 36 million Americans are classified as disabled; about 12% of the total population. More than 50% of those disabled Americans are in their working years, from 18-64. (U.S. Census Bureau)
- 8.3 million disabled wage earners, over 5% of U.S. workers, were receiving Social Security Disability (SSDI) benefits at the conclusion of March, 2011. (Social Security Administration, Disabled Worker Beneficiary Statistics, ssa.gov)
- In December of 2010, there were over 2.5 million disabled workers in their 20s, 30s, and 40s receiving SSDI benefits. (Social Security Administration, Disabled Worker Beneficiary Statistics, ssa.gov)
Most disabilities are the result of illness, not injury. So What are the chances you will become disabled? Take a look at the Personal Disability Quotient calculator from the CDA: Personal Disability Quotient
My personal chances I will be sick or injured and unable to work for 3 months: 20%. What is yours?