Summary: More people are applying for and being awarded Social Security disability benefits than ever before, and these beneficiaries are remaining on the disability rolls for longer periods of time. As a result, disability payments have burgeoned. Changes in beneficiary characteristics have accompanied this growth: the average age of new beneficiaries is now below 50, mental impairment awards to younger workers have risen substantially, and more and more new beneficiaries receive such low disability insurance benefits that they get additional income from the Supplemental Security Income program. These low benefit levels suggest that the new beneficiaries had limited work histories. Higher unemployment probably contributes to increasing applications, and policy changes have produced changes in the numbers and types of beneficiaries. Quantitative data on the impact of these factors are lacking, however, and important questions remain. The upshot is that the Social Security Administration's (SSA) ability to predict future growth and change in the rolls is limited. Better information would also help SSA to determine whether improvements in program management are needed.
