John,

Supplemental Security Income, or “SSI,” is a lifeline for those low-income seniors and people with disabilities who qualify. It’s means tested, where an individual cannot receive benefits if they have more than $2,000 in assets, or $3,000 for a couple.

This $2,000 / $3,000 limit has created a hopeless sense of learned helplessness for those who need the assistance, but are unable to lift themselves out of poverty because of it. The result is a vicious cycle where the recipient is unable to save enough to even begin to imagine not needing the benefit.

Family members too are unable to take on new jobs or promotions, or save money for themselves either, in order to protect their loved one’s benefits. If a recipient wants to marry, the $3,000 limit for a couple can be an insurmountable obstacle as it cuts each person’s already paltry maximum savings by $500 -- a full 25% of the $2,000 individual maximum.

These sums are far too low to enable recipients to build sufficient assets to gain a sense of momentum and break out of poverty. Send a message to Congress today urging them to pass the SSI Savings Penalty Act, which will increase the maximum savings level and eliminate the marriage penalty.

Counted assets include cash, bank accounts, retirement accounts, whole life insurance policies, investments, and certain types of personal property. Because it covers so many types of assets, not only are recipients unable to build any kind of a nest egg for themselves, but they are not able to build future retirement savings either.

Now, Senators Brown and Cassidy, and Representatives Fitzpatrick and Higgins, have introduced the bipartisan SSI Savings Penalty Elimination Act. This bill would exclude retirement savings from the assets counted, and it would increase the limits to a much healthier $10,000 per individual and $20,000 for a couple – thereby eliminating the marriage penalty, as two people are allowed to save twice as much as an individual.

Send a message to Congress in support of the SSI Savings Penalty Elimination Act today.

Thank you for helping low-income seniors and people with disabilities build a healthy sense of self-esteem, along with their savings and retirement accounts.

- Amanda

Amanda Ford, Director
Democracy for America
Advocacy Fund