SSI Savings: What does the SSI Savings Penalty Elimination Act propose?

According to Marca, We often hear politicians talk about supporting families, but the reality of programs like Supplemental Security Income (SSI) tells a different story. To qualify for SSI, you must have a disability and your assets cannot exceed $2,000—a limit that hasn’t changed since 1989. That’s right, 1989! This outdated threshold hasn’t been adjusted for inflation, even though the cost of living has soared over the past three decades.

Marriage Penalty: How SSI Discourages Couples

The situation is even worse for married couples. Instead of doubling the individual asset limit, the SSI program sets the limit at just $3,000 for couples. This means that getting married effectively penalizes people by reducing the amount they can save. Rather than promoting family stability, SSI’s outdated rules actively discourage marriage, pushing disabled individuals into further financial hardship.

The SSI Savings Penalty Elimination Act: A Potential Solution

The SSI Savings Penalty Elimination Act (H.R. 5408 / S. 2767) offers hope for change. This bipartisan bill aims to address the problem by increasing the asset limit to $10,000 for individuals and $20,000 for married couples. Additionally, the bill proposes tying future asset limits to inflation, ensuring that they automatically adjust as the cost of living rises.

Also read: Social Security: What happen to your income if Trump wins the election

How Current SSI Policies Impact Families

Under current SSI rules, qualifying requires meeting three conditions: having a disability, keeping your income below specific limits, and having less than $2,000 in assets. This creates a constant fear that saving for emergencies or education could result in losing your benefits. For couples, the system is even more unfair, as marrying someone who also qualifies for SSI could push both partners into deeper poverty.

The Need for Reform: Restoring Dignity and Financial Security

The goal of SSI is to support people with disabilities, but as it stands, the program traps many in poverty by penalizing saving and marriage. Raising the asset limits and tying future increases to inflation would allow individuals and families to achieve greater financial security. This isn’t just about money—it’s about dignity, stability, and the ability to build a future without the fear of losing essential benefits.