More workers are facing difficult economic times that threaten their financial security and retirement dreams. Council for Disability Awareness (CDA). Paper “Worker Disability: A Growing Risk to Retirement Security”Addresses the general ignorance of the public about the rising incidence of disability and the financial consequences that an unplanned accident or illness could have on retirement savings.
“The responsibility for retirement funding has essentially shifted to the individual,”Robert Taylor, president and CEO of the CDA. “Unfortunately, most Americans just don’t understand that their chances of becoming disabled are on the rise, putting their -; and their families’ -; current and future financial lifestyle at risk. Most employees don’t realize that if their income stops, so do contributions to their 401(k) plan.”
Research shows that 3 out 10 workers will be disabled before reaching retirement. According to the CDA paper, 35 percent of all disabled workers have been reported since 2000. This is mainly due to a declining population, an aging workforce and life-extending medical technology. According to the CDA Web site, however, www.disabilitycanhappen.orgNearly 90 percent of workers are underestimating their own likelihood of becoming disabled. Six out of 10 workers have never discussed how to pay their bills in the event of an income-limiting illness.
A qualified financial advisor can help you make sound financial planning to prepare for financial losses that could result from your disability income. Planning should include determining your living expenses and the costs of living. “added costs”There are many things you can do to protect your income. It is also important to know what income sources you may have if you become disabled. This includes your employer’s long-term disability plans and sick pay, as well as social security disability insurance, worker’s comp, and worker’s compensate. A key financial planning step is to maintain a healthy lifestyle in order to lower your chances of becoming disabled.
“Good disability financial planning is essential for all workers,”Taylor, states “The CDA is working hard to encourage all working Americans to be better prepared to help secure their financial well-being today and into retirement, in the event they experience a long-term disability.”
