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CDA 2011 Advisor Disability Awareness Study

The Disability Divide: Advisor Study

The gap between consumers’ attitudes – and advisors’ perceptions of those attitudes – about disabilities and their potential threat to their financial security.

Income Sources in Event of Disability

When asked what source they’d likely tap in the event they became disabled and couldn’t work, over 40% of consumers said they’d rely on employer-funded sick/vacation leave.

Advisors predict their clients would rely on completely different income sources than those actually cited. In fact, consumers’ top pick – sick pay and vacation – ranked seventh out of 10 choices on the advisors’ list.

Other perceived top sources of income include disability insurance payments, a spouse’s or partner’s income, and debt. But many of the sources cited are probably not sufficient to cover living expenses for an extended period.

Most consumers (65%) said they could not survive financially for more than one year without income.

What’s also interesting to note is that Gen Y respondents were more likely than other groups to consider tapping into their retirement savings – not likely to be a significant asset at this stage in their careers.

Interestingly, “disability insurance payments” ranked fifth on the advisors’ list versus second on the consumers’ list. Perhaps some consumers’ overestimate their coverage – others think they have coverage when they really don’t. Advisors typically recognize that many consumers’ incomes are not well enough protected, or not protected at all. Most consumers have not thought much about how they would replace their most valuable financial resource – their income, and most overestimate their ability to maintain their lifestyle for any extended period of time should they suffer an income loss.

Recognizing that income protection planning is inadequate, advisors are far more pessimistic – or perhaps realistic – about how long consumers can last without income.

Charts and graphs

Research has shown that many individuals prefer to receive information graphically rather than from numbers or written text. The charts and graphs below were derived from various sources, including CDA studies. Please feel free to download and print the charts and graphs to support your needs, and help support our mission to raise awareness of the risk of disability through education and public awareness.

Infographic: The Disability Disconnect
Download our handy infographic highlighting the risk, causes and consequences of disability, and how wage earners’ perceptions differ from the reality.

Download PDF for electronic use
Download PDF for print – letter size
Download individual chart images 

1. Preparing for Disability – Protect Your Income

  • Americans not protecting income against disability (JPG | PDF)
  • Employees do not feel prepared financially (JPG | PDF)
  • How long can you pay bills if disabled? (JPG | PDF)
  • Income is most valuable in achieving long-term financial security
    (JPG | PDF)

2. Disability Divide: Worker Research Study

  • Disability can happen at anytime (JPG | PDF)
  • Percent who could pay the bills with no income (JPG | PDF)
  • Percent who believe disability typically lasts “X” amount of time (duration) (JPG | PDF)
  • What employees value (financial resources) (JPG | PDF)
  • Where would the money comes from to pay bills if disabled? (JPGPDF)

3. CDA Annual Long Term Disability Claims Review (2014)
This section last updated June 13, 2014

4. Social Security Disability Insurance (SSDI) Data
This section last updated June 13, 2014

  • Average monthly SSDI benefit by gender (View Chart)
  • Average monthly SSDI benefit by age (View Chart)
  • Percent of covered workers by age – 10 year comparison (View Chart)
  • Diagnostic causes of new SSDI awards (View Chart)
  • Number of SSDI applications, number approved (View Chart)
  • New SSDI awards as a percentage of applications (View Chart)
  • SSDI historical payment data (View Chart)
  • Fifteen year SSDI trends (View Chart)