CW: Poverty
Social Security benefits are projected to increase next year. Current estimates indicate that people who receive Social Security may see their benefits increase by around 2.8%. For Americans who live on a fixed income, any increase is a good thing. But for many disabled people this news brings up a question: what happens when the cost of being disabled goes up faster than the benefits meant to help with that cost?
Living with a disability often involves many expenses that most Americans don’t have to worry about. There are prescriptions, assistive technology, personal care services, accessible transportation, home modifications, medical supplies, and others. In some cases, these costs can easily run into hundreds or thousands of dollars per year. And unlike other costs, these aren’t costs you can cut.
Financial hardship remains common among disabled people, and those costs help explain why. Researchers adjusted federal poverty calculations to account for disability-related expenses, and the poverty rate rose to 35% from 24%. An estimated 2.2 million more disabled people would be counted as living in poverty if those costs were reflected in official statistics.
Living with a disability in America often comes with bigger economic hurdles than government figures show. This is especially true for people getting Supplemental Security Income (SSI). People receiving SSI have to deal with both inflation and strict asset limits that haven’t changed since 1989. Individuals can’t have more than $2,000 in assets, and couples are limited to $3,000.
Disabled people are expected to cover extra living costs but are also prohibited from saving. Imagine needing a new wheelchair or facing a surprise medical bill; for many SSI beneficiaries, this can turn into a major financial emergency because they cannot have an emergency fund.
There are workarounds, such as ABLE accounts, and special needs trusts. However, each one has its own maze of rules and restrictions.
This is why discussions about Social Security and SSI go beyond just yearly cost-of-living increases. While a 2.8% increase in benefits might help beneficiaries keep up with inflation for another year, it doesn’t fix the larger issue that having a disability itself is expensive. It also doesn’t change the long-standing rules that make it hard for many beneficiaries to achieve financial stability.
For many disabled Americans, the question isn’t just about whether their benefits go up. It’s about whether the programs that are supposed to help them actually reflect the real costs of living with a disability.
Sources:
Heasley, Shaun. “SSI, Social Security Benefits Expected To Rise.” Disability Scoop, 14 Sept. 2026, https://www.disabilityscoop.com/2026/09/14/ssi-social-security-benefits-expected-to-rise/32171/
Morris, Zachary, and Stephanie Rennane. Examining the Impact of Inflation on the Economic Security of Disability Program Beneficiaries. National Bureau of Economic Research, 9 Sept. 2023, https://www.nber.org/sites/default/files/2024-05/NB23-08%20Morris%20Rennane_Accessible.pdf.
Morris, Zachary, et al. “The Extra Costs Associated With Living With a Disability in the United States.” Journal of Disability Policy Studies, vol. 33, no. 3, Dec. 2022, pp. 158–67, https://doi.org/10.1177/10442073211043521.
Shapiro, Joseph. “These Disabled People Tried to Play by the Rules. It Cost Them Their Federal Benefits.” NPR, 8 June 2024, http://www.npr.org/2024/06/08/g-s1-3475/social-security-ssi-asset-limits.