The Supplemental Security Income program was established in 1972 with benefit levels and asset limits set to reflect the economic conditions of that era. Since then, the federal benefit rate has been updated through annual cost-of-living adjustments, but the program’s resource limits — the cap on savings and assets that determine eligibility — have barely changed in decades. The SSI resource limit remains $2,000 for individuals and $3,000 for couples.
These figures were last meaningfully updated in 1989. In current dollars, they represent a fraction of what they were worth when originally set, leaving SSI recipients with almost no ability to save for emergencies, major expenses, or future needs. Legislative proposals to modernize SSI — including efforts to raise the resource limits, adjust the benefit amounts, and update rules around how income and assets are counted — have been introduced in Congress at various points.
The SSI Savings Penalty Elimination Act and similar bills have gained bipartisan support at times, reflecting broad recognition that current rules are outdated. For current and prospective SSI recipients, these limits have real consequences. A minor windfall, an insurance settlement, or an inheritance can push an SSI recipient over the resource limit and temporarily suspend their benefits.
This creates a powerful disincentive to saving and can trap recipients in financial instability. Until legislative reform is enacted, SSI recipients should carefully manage their assets to stay within current limits, understand which assets are excluded, and consider ABLE accounts as a savings option that doesn’t count against the resource limit.
Our team at Grech Law Firm Attorney & Counselor helps Michigan SSI recipients understand and navigate the program’s current rules. Contact us for a free consultation.
