Many people don’t worry about becoming sick or injured, or being unable to afford their lifestyle if they were unable to work. However, we must all consider this possibility, because a disability has become a common – and elevating – issue, and individual savings rates are at all-time lows.
Consider the following facts:
- There is 3 in 10 chance of a 20-year old worker suffering a disability prior to reaching retirement age. (www.socialsecurity.gov/dibplan)
- Every three seconds a disabling injury occurs in a public setting and every four seconds in the home. (National Safety Council, “Injury Facts,” 2007 Edition)
- Since 2000 the number of workers who have become disabled has risen by 35% according to the Social Security Administration. (www.disabilitycanhappen.org/news/survey_summary.asp)
- In the United States personal savings rates averaged only 0.5% in 2007, with a 2.0% average over seven years. (U.S. Bureau of Economic Analysis, 2007)
What does all of this mean to real people and their lives?
- Approximately two-thirds of families in America live from paycheck to paycheck on a monthly basis (Parade Magazine, “Is the Dream Still Possible?” April 23, 2006)
- Over 70% of working Americans have not saved enough money to meet short-term emergencies. (National Investment Watch Survey, A.G. Edwards Inc., 2004)
Loss of income due to a disability brought on by an illness or injury can happen to anybody. What would your answers be to these essential questions?
- Would I be able to afford my lifestyle without an income?
- What amount of my current income pays to cover living expenses every month – mortgage, utilities, food, car payments and gas, and home repairs – and what would you do if you had no income to pay these expenses?
- How long could I live off of my savings?
- What changes would my family or I have to make to our lifestyle if I lost my income?
- Would I be able to fund future plans – college funding, retirement, travel?
The threat of a disabling event is not just physical. A disability can have a profound impact emotionally and financially, not only on yourself, but for your family and your future.
