Financial Capacity of SSI Recipients and the 2026 ABLE Age Adjustment Act

Achieving a Better Life Experience (ABLE) accounts can help build financial capacity for people with disabilities as tax-advantaged savings vehicles designed for disability-related expenses. ABLE accounts might be particularly beneficial for low-income individuals with severe disabilities who receive Supplemental Security Income (SSI) from Social Security Administration (SSA), because funds deposited in ABLE accounts do not count toward the asset limits required to maintain monthly SSI benefits and access to healthcare. This paper investigates the potential savings and financial capacity of eligible individuals with disabilities who may benefit from the expansion of ABLE accounts. Utilizing the 2014-2017 Survey of Income and Program Participation merged with the 2014 Social Security Supplement, this study examines different levels of access to savings and financial assets - factors that may influence ABLE participation - among people with disabilities, particularly SSI recipients. Financial capacity is analyzed across three disability onset age groups: before age 26, ages 26 through 45, and age 46 older, with particular attention to individuals in the second group, who will become eligible for ABLE in January 2026 when the onset-age threshold increases from age 26 to age 46. Findings from logistic and OLS regression analyses indicate that financial capacity is particularly weak among SSI recipients who are newly eligible for ABLE accounts, suggesting limited financial resources to open or contribute to ABLE accounts. Directions for further research on ABLE participation are discussed.