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What are the odds that you will become too sick or injured to work? Or that if such misfortune happens, it will cause significant financial strain for you and your family? Unfortunately, many people don’t face the uncomfortable truths about these questions. And it could cost them.
So, here’s some hard facts:
- Just over one in four 20-year-olds will become disabled before reaching retirement age.1
- Various surveys put the number of Americans living paycheck to paycheck between 34 percent2 to over 60 percent,3 without enough savings to cushion the financial impact a disability may cause.
- The average monthly benefit paid to disabled workers by Social Security Disability Insurance during the first few months of 2026 was roughly $1,634.4
Potential financial loss
Your income — when viewed over your entire career — is often your single most important asset. A permanent disability, therefore, can have a significant impact on you and your family. The figures below demonstrate the potential financial loss of future earnings if you were to become permanently disabled.
For example, a 35-year-old worker with an annual salary of $75,000 who experiences a permanent disability may lose up to $2,250,000 in potential earnings by age 65.
How much could a disability cost you?
Causes of disabilities
It is not uncommon for people to assume that most disabilities are the result of accidents. In reality, the majority of disabilities people suffer are due to various forms of illness.
Source: MassMutual claims 2005-2025
Conclusion
These statistics show that over the course of a person’s life, it is not uncommon for one to become disabled. What may come as a surprise to many is not only the causes of disabilities, but the potential financial loss associated with a permanent disability. Disabilities can occur at any time.
Educating yourself about these uncomfortable truths is a good place to start to help you reduce your own personal financial risk of becoming disabled. If you have disability coverage through work, it's worth checking whether it's enough — group plans can fall short in both the amount and type of income they replace.A financial professional can provide suggestions and guidance for implementing a plan. (Need a financial professional? Find one here)
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Frequently Asked Questions about disability situations
Q. What are the odds of becoming disabled?
A. More than one in four of today's 20-year-olds will become disabled before reaching retirement age, according to the Social Security Administration. The odds rise as you age and vary by health and occupation.
Q. What is the most common cause of disability?
A. Illness — not accidents — causes the majority of disabilities. Musculoskeletal conditions like back and joint disorders, cancer, and mental health conditions are among the leading reasons for disability claims.
Q. Is employer disability insurance enough?
A. Group long-term disability plans typically replace about 60% of base salary and can have caps and exclusions that leave a gap. Many workers supplement employer coverage with an individual disability income insurance policy.
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Discover more from MassMutual …
Is disability income insurance worth it?
Social Security disability benefits: A lifeline for many but not for all
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1 Social Security Administration, “Disability Facts.”
2 Bankrate, “Living Paycheck to Paycheck Statistics,” Aug. 13, 2024.
3 LendingClub, “Nearly 60% of Credit Cardholders in the U.S. Live Paycheck to Paycheck,” Feb. 26, 2025.
4 Social Security Administration, “Selected Data from Social Security's Disability Program.”
