Decades after the creation of this federal insurance, millions of Americans do not recognize the importance and value of Social Security Disability Insurance (SSDI). And those who do, may feel significant embarrassment at the idea of applying for disability benefits when their dire financial situation demands it. The benefits offered by SSDI have helped millions of workers with disabilities, but lingering stigmas and myths have likely kept millions more from applying for these life-changing benefits due to feelings of shame and discomfort engendered by these negative connotations.
But in the 65 years since SSDI first became available to support former workers with disabilities, we have come a long way as a society in advancing tolerance and disability inclusion. In recognition of how far we’ve come, let’s debunk a few common, outdated misconceptions and enable our family, friends and neighbors to move forward in the application process with confidence.
Myth #1: SSDI is a handout
The belief that SSDI is a free payout is the most persistent piece of misinformation about this valuable program. SSDI is an earned insurance benefit, one that over 156 million workers have access to as a result of their FICA payroll tax contributions. Therefore, the funds to cover this benefit come from the workers themselves and do not represent an extra burden on taxpayers or appeal to would-be “freeloaders.”
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Beyond the source of the funding, the Social Security Administration (SSA) has mandated stringent requirements for all individuals looking to receive SSDI benefits. The symptoms an individual is experiencing must be of a certain severity, and the most important piece is providing medical documentation. The number of people currently receiving benefits — 8.2 million, a mere 5% of those who have access to these benefits — is a testament to the difficulty of qualifying, further emphasizing the truth that this program does not cultivate “freeloaders” and is, in fact, earned by all those who utilize it.
Myth #2: Individuals who enroll in SSDI never return to work
This is another misconception that goes hand-in-hand with the first myth, but it couldn’t be further from the truth. SSDI is only intended to be used for as long as it takes for an individual to medically recover enough to begin taking steps to return to work. Many individuals receiving SSDI benefits express their desire to return to the workforce as soon as possible. It is common for the recovery process to take a year or longer, and SSDI serves as a support that allows individuals to take the time they need without fearing the financial repercussions.
At the same time, all individuals currently receiving SSDI benefits are eligible for and encouraged to utilize the Ticket to Work Program (TTW), which is a free service that connects individuals with Employment Networks (ENs). Representatives from ENs assist individuals with interview preparation, résumé writing and overcoming the barriers to finding employment once they are ready. The allocation of these resources illustrates the intention that SSDI is not necessarily permanent, and the willingness of most individuals receiving these benefits to return to work speaks to the falsity of any belief that SSDI is a permanent benefit.
Myth #3: The monetary component is the only reason to apply for SSDI
For any worker considering whether to apply for SSDI, it’s important to understand the breadth of the benefits that go along with the program. While the primary benefit of applying for SSDI is monetary, there are many additional advantages to applying, including dependent benefits, Medicare coverage and a disability freeze that protects their Social Security retirement benefits.
Whether someone needs income to avoid bankruptcy or foreclosure, health insurance due to the loss of employment, or assistance in potentially returning to work, applying for SSDI is the first step toward securing that support.
SSDI benefits assist eligible individuals with disabilities, but too often people feel judged or ashamed of the need to ask for help. These myths have created a negative association around the SSDI application process, but it is a fundamental insurance program that millions of people benefit from every day.
Going forward, we need to do everything we can to squelch these stigmas and ensure that individuals with disabilities feel comfortable asking for the help they need and deserve.
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market TodayThe main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
Retirement Health Care Costs Are On the Rise: What You Need to KnowA 65-year-old retiree will face significantly higher lifetime health care costs than they would have a year ago, even with Medicare. Here are the surprising totals.
-
You Don't Have to Be Wealthy to Need a Wealth ManagerNavigating complex financial decisions is hard on your own, no matter how much money you have. A wealth manager can provide comprehensive financial planning, investment management, risk management and more.
-
Despite Tariffs, These Investment Experts Are Bullish on European EquitiesEuropean equities were one of the better-performing investments during the first half of 2025. They could be a good long-term prospect for U.S. investors needing to diversify, according to these investment managers.
-
How Do You Know You Are Ready for a Gray Divorce? 15 Yes-or-No QuestionsAs more people 50 and older get divorced, many splits are initiated by women who want a new path. Answer these 15 questions to see if you might need to think about how you should move forward.
-
'Buy Now, Pay Later' for Everyday Spending? This Financial Pro Thinks It's Risky'Buy Now, Pay Later' apps can get you out of a jam when you need money quickly. But using them regularly for small purchases could create problems.
-
Five Things to Consider Before Rolling Your 401(k) into a Roth IRAConverting at least some of an old 401(k) to a Roth IRA can offer long-term tax benefits and retirement flexibility, especially if you anticipate being in a higher tax bracket later or wish to leave a tax-free legacy.
-
From Dream Apartment to Nightmare: When Your Landlord Evicts You Through No Fault of Your OwnThis is what I suggested a tenant do to get out of her lease after her landlord's inexperience and lack of action made her rental situation unsafe. It's a legal situation called 'constructive eviction.'
-
Six Steps to Being Empowered and On Track: An Expert Financial Guide for WomenWhile most female investors feel on track with their financial goals and empowered by managing their investments, many regret not starting sooner. Here's how you can get started and take control of your financial future.
-
Selling Your Business? This Powerful Insurance Option Unlocks Multigenerational WealthPrivate placement life insurance (PPLI) offers almost unbelievable investment flexibility, estate planning and tax advantages. And it's completely legit.
