Does My Savings Account Affect My Social Security Benefits?

Yes, your savings account can affect your Social Security benefits, but the impact depends on which type of benefit you receive:

Supplemental Security Income (SSI)

SSI provides financial assistance to low-income individuals who are 65 or older, blind, or disabled. Unlike Social Security Disability Insurance (SSDI), which is based on your work history, SSI considers your income and resources, including savings, when determining eligibility and benefit amounts.

How Savings Affect SSI Eligibility:

  • Resource Limits: SSI has strict resource limits. Individuals can only have $2,000 in countable resources, and couples can have $3,000. Countable resources include cash, bank accounts, stocks, bonds, and most other assets.
  • Exemptions: Some assets are exempt from the resource limit, such as your home, one vehicle, and certain life insurance policies.
  • Impact on Benefits: If your savings exceed the resource limit, you may be ineligible for SSI or your benefits may be reduced.

How Savings Affect SSI Benefits:

  • Income Calculation: While savings are not considered income for SSI purposes, interest earned on savings accounts is. This interest is added to your other income to determine your benefit amount.

Social Security Disability Insurance (SSDI)

SSDI provides benefits to individuals who have a disability that prevents them from working. Unlike SSI, SSDI does not have resource limits. This means you can have any amount of savings without affecting your eligibility or benefit amount.

How Savings Affect SSDI Benefits:

  • No Impact: Your savings do not affect your SSDI eligibility or benefit amount.
  • Work Incentives: SSDI offers work incentives that allow you to save money without jeopardizing your benefits. These incentives include the Plan to Achieve Self-Support (PASS) and Individual Development Accounts (IDAs).

Strategies for Managing Savings and Social Security Benefits:

  • Understand the Rules: Familiarize yourself with the specific rules and regulations regarding savings and your type of Social Security benefit.
  • Seek Professional Advice: Consult with a financial advisor or benefits specialist to discuss your individual situation and develop a plan for managing your savings and benefits.
  • Utilize Work Incentives: If you receive SSDI, explore work incentives that allow you to save money while maintaining your benefits.
  • Consider ABLE Accounts: If you receive SSI, consider opening an ABLE account. These accounts offer tax-advantaged savings options for individuals with disabilities.

Additional Resources:

While your savings account can affect your SSI benefits, it does not impact your SSDI benefits. Understanding the specific rules and utilizing available resources can help you manage your savings and maximize your Social Security benefits.

Social Security only covers earned income, your wages, or your net income from self-employment. Your wages are covered by Social Security if money was deducted for “Social Security” or “FICA.” This indicates that you are contributing to the Social Security system, which safeguards your retirement, disability, benefits for survivors, and Medicare.

Annuities, pension payments, and interest or dividends from investments and savings are not considered earnings for Social Security purposes. Income taxes may be due, but Social Security taxes are not.

A portion of the resources of a spouse, parent, sponsor of a noncitizen, parent’s spouse, or sponsor are occasionally “deemed” to belong to the individual filing for SSI. We call this process the deeming of resources. Of a parent’s total countable resources, $2,000 does not count if the child is under the age of eighteen and lives with them. $3,000 is not taken into account if the child lives with two parents. We include any amounts beyond the parents’ limits in the child’s $2,000 resource cap.

When a person qualifies for past-due SSI benefits, Social Security is required to pay the State back first if the person received any financial interim assistance while they awaited their SSI decision. We will have to pay the outstanding benefits in installments if they are substantial. The installment payments are made every six months in no more than three installments.

One of the elements that determines whether you qualify for SSI benefits is the value of your resources. However, not all resources count for SSI. You won’t be eligible for SSI for that month if the value of your resources, as determined by us, is greater than the monthly cap at the start of the month. You might start receiving SSI the month after you sell the extra resources if you choose to sell them for their full value. In some circumstances, you might even be able to gain advantages while attempting to sell the extra resources.

You might be eligible for SSI while you are trying to sell real estate or other resources if doing so would put you over the resource cap. You have to repay the SSI benefits you received during the time you were attempting to sell the property or other resource when you sell it. We call these “conditional benefits”. Before we can start making conditional payments, you must sign the “Agreement to Sell Property” form and we must accept it. The form is available at your neighborhood Social Security office.

Bank Accounts & Your Social Security, SSDI, SSI, VA Checks


How much money can you have in savings and still get Social Security?

To be eligible for SSI, your assets must be less than $2,000 for an individual and less than $3,000 for a married couple. However, not all assets count towards the resource limits. The Social Security Administration lists 44 resource exclusions.

Does Social Security look at your savings account?

For those receiving Supplemental Security Income (SSI), the short answer is yes, the Social Security Administration (SSA) can check your bank accounts because you have to give them permission to do so.

Does a savings account affect Social Security retirement benefits?

Pension payments, annuities, and the interest or dividends from your savings and investments are not earnings for Social Security purposes. You may need to pay income tax, but you do not pay Social Security taxes.

What type of income reduces Social Security benefits?

When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net profit if you’re self-employed. We include bonuses, commissions, and vacation pay.

Does social security limit my savings account?

These eligible individuals receive Social Security benefits in the maximum amount they qualify for, and Supplemental Security Income provides additional benefits. Receiving Social Security does not limit your resources or assets, including a savings account.

Can I have a savings account if I receive Social Security disability?

Yes. If you receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) you can have a savings account. However, there could be limits on how much you can have in it, depending on which type of disability benefit you collect.

Can I get Social Security if I have a savings account?

Your ability to access these benefits also depends on the age you start to receive these benefits. You will receive the money you pay into the program if you meet the minimum age and immigration status requirements. For this reason, having a savings account does not influence your ability to access Social Security.

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