Council for Disability Awareness (CDA) Study Shows Recession Risks Make Disability Planning More Important

A recent study by the Council on Disability Awareness (CDA) indicates that more than half of all Americans have never discussed with anyone how they would continue paying their bills if they became temporarily disabled. The good news is that it is possible for employers to help employees protect themselves from the financial impact of disability by planning ahead. "While there may not be much people can do about the housing crisis or the recession - or how either of those factors will affect the economy - people can do something about the threat of disability and its impact on personal finances," says Barry Lundquist, CDA president. The recent Worker Disability Planning and Preparedness Study sponsored by the CDA reveals Americans’ knowledge of and attitudes about disability: More than half (56%) have never discussed disability planning. Most workers rate their earning ability as the most important factor in their long-term financial security, but two out of three don't even think about disability when discussing financial planning. Most believe they could rely on a patchwork of income sources, including help from family and friends, retirement savings, home equity loans and credit cards if they were out of work for a year. 62% would count on a spouse's or partner's income for support, despite the fact that the majority of American households - even those that are two-income - live paycheck to paycheck and have a negative savings rate. According to the survey, Americans are also confused about employer-sponsored disability programs and the Social Security Disability Insurance program: Only half of workers who would receive employer-sponsored sick leave benefits feel they understand them very well. Of those whose employers offer a long-term disability program, just 28% said they understood the program. Nearly 20% of survey respondents weren't even sure if their employers offered such a program. One in three workers surveyed do not understand or is not aware of Social Security Disability Insurance, a key disability program for 150 million workers across America. The survey underscores the need for workers to incorporate the financial risks associated with disability into their financial planning mindset and actions. "The ability to earn a living is the most important driver of financial security for the majority of people,” says Lundquist. “Broader awareness and education about available disability programs is a critical starting point to helping more workers assume responsibility for their long-term financial security."  more informtaion click here!