Building savings while on disability benefits feels impossible for many people—but understanding the different rules for SSI and SSDI can help you find ways to set money aside without risking your benefits.
In this article, we'll cover:
- Why SSDI recipients can save without limits
- The strict resource limits that affect SSI recipients
- What counts (and doesn't count) toward SSI's $2,000 limit
- How ABLE accounts let you save up to $100,000 on SSI
- Practical strategies for building savings while protecting benefits
SSDI: Save as Much as You Want
If you receive Social Security Disability Insurance (SSDI), you can have a savings account with any balance without affecting your benefits. SSDI is based on your work history and the taxes you paid into Social Security—it's not a needs-based program, so there are no asset or resource limits.
You can open savings accounts, invest in the stock market, own property, and accumulate wealth without any impact on your SSDI payments. The only thing that affects SSDI is earned income above certain thresholds, not savings or assets.
SSI: The $2,000 Challenge
Supplemental Security Income (SSI) works very differently. As a needs-based program, SSI has strict resource limits: $2,000 for individuals and $3,000 for couples. Your savings account balance counts toward this limit.
If your countable resources exceed the limit, even for one day, your SSI benefits stop. This makes traditional saving extremely difficult for SSI recipients and creates a poverty trap that's hard to escape.
What Counts Toward SSI's Resource Limit?
Not everything you own counts as a resource. The following are typically excluded: your home (if you live in it), one vehicle, household goods and personal effects, life insurance policies with face values under $1,500, and burial funds up to $1,500.
However, cash, bank accounts, stocks, bonds, and most other financial assets do count. Even money that someone else holds for you can count if you have access to it.
ABLE Accounts: The $100,000 Exception
For SSI recipients, ABLE accounts are transformative. These tax-advantaged savings accounts allow eligible people with disabilities to save up to $100,000 without it counting toward SSI's resource limit. You can use ABLE funds for qualified disability expenses like housing, transportation, healthcare, and education.
To qualify, your disability must have begun before age 46. If you receive SSI or SSDI, you automatically meet the disability requirement. You can open an ABLE account through any state's program, regardless of where you live.
Strategies for Building Savings on SSI
If you're on SSI and don't yet have an ABLE account, open one as soon as possible. Any amount you can save there is protected. For money in regular accounts, monitor your balance carefully—especially around the first of the month when SSA checks resource levels.
Some SSI recipients strategically time large purchases or bill payments to keep their countable resources below $2,000. While this requires careful planning, it allows you to manage cash flow without accidentally exceeding limits.
Managing savings on SSI requires the right tools. Purple's checking account is built for disability benefit recipients, helping you track your resources and stay within SSI limits.