Nearly every employee and self-employed professional in the United States has to pay income taxes. People also make contributions to the Social Security program either quarterly or from each paycheck. Their contributions help fund key benefit programs. Most people expect to use Social Security benefits when they retire. They accrue credits each year that apply toward their eligibility.
Most people don’t think about those benefits or the credits that have accrued until they start planning financially for retirement. A relatively small subset of the population may require support from Social Security before they reach retirement age. The Social Security Administration (SSA) oversees disability benefits programs in addition to retirement benefits. Social Security Disability Insurance (SSDI) benefits are a crucial form of protection for working individuals.
Those who have sufficient credits can potentially apply for SSDI benefits when health issues prevent them from continuing to work. Sometimes, people do not apply for benefits that they might qualify to receive due to misinformation. The idea that every SSDI applicant gets denied is a common one. Is it true that the SSA doesn’t approve anyone when they apply at first?
A minority of people receive immediate approval
The SSA does not actually deny all applicants. In fact, the organization has programs in place to identify those who require fast-track processing due to progressive and terminal conditions. Hundreds of thousands of applicants every year receive SSDI benefits after developing disabling medical conditions.
The majority of applicants, however, do receive negative news after their initial application. A review of SSDI application outcomes between 2010 and 2019 shows that just over one in five people when they initially apply. That decade saw an average approval rate of 21% at the initial application stage. Approximately another 10% of applicants each year secure benefits through the appeals process.
Overall, that means that approximately one in three SSDI applicants eventually secures benefits. The approve process could potentially take more than a year, but those who prevail when they appeal can sometimes qualify for backdated benefits.
Understanding what happens during SSDI applications may help people make better choices when they need to apply. Those struggling with medical challenges may benefit from talking about their situation with someone familiar with SSDI applications and appeals.