Frank Liang
Supplemental Security Income (SSI) is a federal assistance program that provides financial help to low-income disabled individuals and those older than 65. SSI was created after President Richard Nixon signed the Social Security Amendments of 1972 and officially went into effect in 1974. The amount an individual receives depends on their level of income and the resources they have available, such as money in their bank accounts.
Although SSI does help many people who are disabled or elderly, it puts a stranglehold on their economic and professional advancement. Individuals who receive SSI are not allowed to have more than $2,000 in assets at any given time. If two people who receive SSI get married, instead of them each being allowed to have $2,000 in assets, they as a couple are only allowed to have $3,000 combined. This puts a strain on many people’s livelihoods, and makes it more difficult for people wanting to transition out of SSI, save money, or get married.
When SSI was first passed in 1974, the original asset limits were $1,500 for individuals and $2,000 for couples. They increased to the current limits in 1989 and have not changed since. Thanks to inflation, everything from housing to food has gotten more expensive in the past 35 years, and so these limits make it difficult for people like me to save money and live independently.
After becoming a quadriplegic in 2016, I signed up for SSI with the help of my case manager when I returned home from rehabilitation. Prior to becoming a quadriplegic and receiving SSI, I was a student with a simple student job working at the computer. My employment history was limited and not nearly enough to live off of, nor could I qualify for Social Security Disability Insurance, which generally pays more and does not have an asset limit.
SSI provided financial help when I was adjusting to a new life and returning to school, but the $2,000 asset limit has always been a burden to me. I eventually want to live independently, but I currently live with my family. This means that most of my expenses are paid for, such as rent and utilities, and that my SSI money is mostly used for food and some medical supplies that aren’t covered by insurance. I have money left over at the end of each month, but instead of saving this money to put down a safety deposit on an apartment, the system forces me to quickly get rid of any excess money before the next SSI payment. I usually transfer the money to other family members or spend it on things I don’t necessarily need. On the other end of the spectrum, if I need to make an expensive purchase, most of my money for the month is used up, and I may not have enough to pay for my food and medical supplies. There’s always this push-and-pull between having too much money and too little.
With the $2,000 asset limit, the SSI program is incentivizing spending rather than saving, and actively discouraging responsible long-term financial decisions. People recommend that young adults “invest and save when you’re young”, but that’s difficult when you have a cap on how much you can have in your bank account at any one time.
To address this issue, U.S. Senators Sherrod Brown (D-OH) and Bill Cassidy (R-LA) have introduced the SSI Savings Penalty Elimination Act, with Congressman Brian Higgins (D-NY-26) and Congressman Brian Fitzpatrick (R-PA-1) sponsoring the bill in the House of Representatives. This bill would:
- Increase the SSI asset limits from $2000 to $10,000 for unmarried individuals.
- Increase the SSI asset limits from $3000 to $20,000 for married couples.
- Require asset limits to be adjusted yearly using an average of Consumer Price Index (CPI) rates.
If the SSI Savings Penalty Elimination Act passes, it would help me and many others who constantly worry about going over the asset limit and losing our benefits. Raising the SSI limit to $10,000 would offer a lot more reassurance that I won’t go over the limit, and would enable people like me to have more financial security.
If you want to help RespectAbility ensure that disabled people can save money without losing their benefits, visit our Action Center and help us advance the SSI Savings Penalty Elimination Act!
