Many adults in New Jersey share the similar goal of building up some personal savings. Unfortunately, some people face greater hurdles on the way to this goal. Those receiving SSDI benefits may even be worried that saving any amount of money will put their benefits in jeopardy. While this can be the case, there are options for savings that will not affect the Social Security Administration’s income limit.
Why do SSDI recipients need to save money?
A common misconception about SSDI recipients is that they are already receiving monthly benefits, so they do not need anything more. In reality, men and women who receive SSDI for disabilities often have extra expenses that are not wholly covered by their benefits or medical insurance. Building up savings can be vital for covering extra expenses such as:
- Handicap accessible housing
- Housing located near doctors
- Frequent doctor visits
- Prescriptions
- Expensive dietary restrictions or needs
- Service animals
How to save money
Benefit recipients can explore a few different options for saving money without surpassing the income limit. The 2014 Achieving a Better Life Experience — ABLE — act was passed, allowing those who became disabled prior to age 24 to set up ABLE savings accounts, which can have as much as $100,000 exempt from the income limit. Individual Development Accounts — IDAs — and special needs trusts are also viable options.
Securing SSDI benefits can be life changing for someone living with a disability. Losing those benefits would be a devastating blow, so it is important for recipients to be cautious in how they approach saving money. When applying for benefits or appealing a denial, applicants may want to discuss their options for savings with their respective attorneys.
