Does Money in the Bank Affect Social Security Disability?

Social Security provides disability benefits to individuals unable to work due to a severe medical condition. A common inquiry arises concerning the impact of personal savings or other financial resources on these benefit programs. Understanding the distinctions between the two main types of Social Security disability benefits is important for those seeking assistance.

Social Security Disability Insurance (SSDI) and Your Finances

Social Security Disability Insurance (SSDI) operates as an earned benefit program. Eligibility and benefit amounts for SSDI are primarily based on an individual’s work history and their contributions to Social Security taxes through payroll deductions. Individuals accumulate “work credits” over their working lives, which determine their eligibility for this program. Generally, a person needs to have worked for a certain number of years, recently enough, to qualify.

A key aspect of SSDI is that a claimant’s personal financial assets, including money in bank accounts, investments, or other savings, do not affect eligibility or the amount of benefits received. The Social Security Administration (SSA) focuses on whether a claimant’s medical condition prevents them from engaging in Substantial Gainful Activity (SGA). This program is not needs-based, so the amount of wealth an individual possesses is not a factor in determining whether they qualify or how much they receive.

For 2025, the monthly SGA threshold is set at $1,620 for non-blind individuals and $2,700 for those considered statutorily blind. If an individual earns above these amounts, it generally indicates an ability to perform substantial work, which can affect their continued SSDI eligibility. While earnings can impact eligibility, the balance in one’s bank account does not. The primary consideration remains the individual’s inability to perform work due to disability and their accrued work credits.

Supplemental Security Income (SSI) and Your Finances

Supplemental Security Income (SSI) is a needs-based program designed to provide financial assistance to individuals who are aged, blind, or disabled and have limited income and resources. Unlike SSDI, a work history is not a prerequisite for SSI eligibility. The program aims to ensure that eligible individuals can meet basic needs for food and shelter.

For SSI, strict limits apply to both countable resources (assets) and income. The resource limit for an individual is $2,000, and for a couple, it is $3,000 in 2025. Money held in bank accounts is considered a countable resource for SSI purposes. Cash on hand also counts towards this limit.

Exceeding these resource limits can result in ineligibility for SSI benefits or a reduction in the monthly payment. If an individual’s countable resources are over the limit at the beginning of a month, they typically will not receive SSI benefits for that month. The SSA continuously evaluates an SSI recipient’s countable income and resources monthly to ensure ongoing eligibility. Promptly reporting any changes in financial resources to the SSA is crucial to avoid overpayments or interruptions in benefits.

Exempt Assets and Income Considerations

While money in bank accounts generally counts towards the SSI resource limit, several types of assets are specifically excluded from this calculation.

Exempt Assets for SSI

The home an individual lives in, along with the land it sits on.
One automobile, regardless of its value, if used for transportation by the individual or a household member.
Household goods and personal effects.
Burial plots and a certain amount set aside for burial funds, typically up to $1,500 each for an individual and their spouse.
Property used in a trade or business.
Funds in ABLE accounts, up to a certain limit, and assets held in special needs trusts.

Income is a separate factor that can affect both SSDI and SSI benefits. For SSI, most types of income, whether earned from work or unearned from other sources, reduce the monthly benefit amount. The SSA applies specific rules and exclusions when calculating countable income, but generally, unearned income reduces SSI benefits almost dollar-for-dollar and earned income by approximately one dollar for every two dollars earned.

For SSDI, earning income above the Substantial Gainful Activity (SGA) level can impact continued eligibility for benefits. The SSA has work incentives, such as the Trial Work Period, which allows recipients to test their ability to work without immediately losing benefits. For 2025, a month counts as a Trial Work Period month if earnings exceed $1,110. It is crucial to report all changes in income and resources to the SSA to ensure accurate benefit calculations and avoid potential overpayments.