Understanding the SSI 'Marriage Disadvantage'

Love and Policy: The Story of Jennifer and Lewis

In December 2023, Jennifer Updike and Lewis Fredette from Auburn, New York, embraced a new chapter in their lives by getting engaged. Both individuals, who are navigating their own journeys on the autism spectrum, are excited about the prospect of moving in together and celebrating their love in a spiritual wedding ceremony.

The Marriage Dilemma

However, an unexpected challenge looms over their happiness: the "marriage penalty." As recipients of Supplemental Security Income (SSI), if they unite as a married couple, they would face a decrease of approximately $300 in their monthly income. The resource caps set by the National Council on Disability limit their joint savings to under $3,000—$1,000 less than they could individually possess. This sad reality has led them to postpone their marriage indefinitely.

Financial Decisions at Heart

“Our decision to marry revolves entirely around the financial impact,” Lewis explains. “It’s heartbreaking to think that love comes with a price tag.”

Jennifer concurs, stating, “With that kind of income loss, supporting ourselves wouldn’t be feasible.”

A Larger Community Issue

The love story of Jennifer and Lewis is not unique; they are among over 6.5 million SSI recipients above the age of 18, as reported by the Social Security Administration in 2022. A 2021 analysis revealed that many working-age SSI recipients have never married, contrasting sharply with the broader adult population.

Marriage Without Consequences?

The Social Security Administration (SSA) inadvertently deters couples with limited income and disabilities from tying the knot. Nevertheless, some strategies can help couples marry while mitigating their financial losses.

Understanding SSI

“SSI is a needs-based initiative, akin to welfare,” emphasizes Steven R. Dolson, an attorney focused on Social Security disability benefits. Unlike other benefits requiring a work history, SSI supports individuals with disabilities who are struggling financially. However, accessing these benefits can be a daunting process.

Rules and Assumptions

Dolson mentions that the system is often trying to reduce the number of beneficiaries, based on the belief that married couples generally require less income due to shared living expenses.

Married or Not? The SSA’s Perspective

Couples can marry and still receive SSI, but there are critical factors to consider. Approval for SSI benefits typically grants access to Medicaid. “If your combined income or resources exceed certain limits, you risk losing your insurance—an alarming situation for those reliant on SSI,” Dolson warns.

Furthermore, the SSA may label unmarried couples as married based on their behavior. For instance, sharing a last name or jointly owning property can lead to reassessment of benefits, regardless of state laws about marriage.

Navigating Resource Limits

The SSA defines “resources” as anything easily convertible to cash, including bank funds, vehicles, and personal assets. Certain exemptions do apply, such as your home, essential vehicles, and even wedding rings, up to specified values.

Smart Strategies for Couples

Additionally, SSI recipients can use certain trusts to maintain their benefits while saving. Establishing a Plan to Achieve Self-Support allows individuals to pursue work goals while not affecting their SSI eligibility. Furthermore, through ABLE accounts, individuals can save up to $100,000 for qualified disability costs without compromising their benefits.

Voicing Concerns

Despite potential strategies, many married SSI recipients still face significant financial hurdles. As U.S. Senate Finance Committee Chairman Ron Wyden lamented, “The outdated rules surrounding income and assets in the SSI program make it nearly impossible for individuals with disabilities to find employment, save money, or consider marriage.”

As Lewis points out, “Most people are unaware of these resource limits; it’s an issue that needs more discussion.” Their story is a poignant reminder of the intersection between love and the policies that shape our lives.