Returning to work can be exciting, but for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) recipients, concerns about what happens to your benefits, and how you’ll financially support yourself during the transition—or returning to employment doesn’t go as planned—can loom large.
Transitioning from disability benefits to employment represents one of life’s most significant financial shifts. Fortunately, you don’t have to do it alone.
As a Social Security Administration-approved Employment Network, Disability Services of America is here to help you navigate the Ticket to Work program and reenter the workforce with confidence and security. We understand the financial concerns that come with this life-changing decision. Proper planning and support can create a stable economic foundation that protects your security while building independence.
Here’s what you should know about developing a financial transition plan that addresses your unique circumstances and goals, empowering you to make informed decisions about your future, and how our Employment Network can assist you.
Understanding the Financial Impact of Transitioning to Work
Moving from SSDI or SSI benefits to employment affects wide-ranging aspects of your financial life, from monthly income structure to health care, housing assistance, food benefits, and other supports. Thankfully, the Ticket to Work program provides crucial protections during this transition period. Your benefits continue while you test your ability to work full time, giving you financial security while you build employment skills. The Social Security Administration (SSA) also suspends Continuing Disability Reviews (CDRs) while you actively work toward your career goals, protecting your benefits from unexpected terminations.
Creating a comprehensive transition budget that accounts for your current benefit amounts, projected work earnings, and any changes in expenses or support services can help you make informed decisions about when to reduce reliance on benefits. Social Security work incentives further ease the financial transition. Programs like the Earned Income Exclusion for SSI recipients and the Trial Work Period (TWP) for SSDI beneficiaries allow you to keep more benefits while earning money, maximizing your total income.
Emergency planning becomes particularly essential during this transition phase, as unexpected job loss, medical issues, or other challenges could interrupt your employment. Having systems in place to quickly restart benefits or access other support services provides much-needed peace of mind as you work toward returning to the workforce.
Benefits planning services through Disability Services of America and other approved Employment Networks can help you understand how exactly work will affect your specific situation. Our personalized consultations help you make confident decisions about your employment path.
Creating an Emergency Fund
Building financial reserves before transitioning to work provides crucial security. An emergency fund that accounts for unique challenges like benefit restart timelines and medical coverage gaps is an economic bridge during unexpected employment disruptions.
Start building your emergency funds while receiving full benefits, even if you can only save small amounts each month. The Achieving a Better Life Experience (ABLE) Act allows eligible beneficiaries to save up to $100,000 in their ABLE account without impacting SSD eligibility, providing a valuable tool for amassing emergency savings.
Your emergency fund should cover at least three to six months of essential expenses, including housing, food, utilities, and medical costs. It should also include potential costs like transportation to and from work, professional clothing, and tools or equipment needed for your job.
Our benefits counselors can help you determine the right emergency fund size for your situation and identify additional resources available during financial emergencies.
Health Care, Transportation, and Other Work-Related Expenses
Medicare and Medicaid provide comprehensive coverage for disability benefit recipients, but employment often changes healthcare access and costs. Understanding these changes helps you budget appropriately and avoid coverage gaps.
Medicare continuation provisions allow SSDI recipients to keep Medicare coverage for several years after returning to work. Part A hospital coverage continues for at least 93 months after benefits end due to work, while Part B medical coverage can continue indefinitely if you pay premiums. This continuation provides valuable security as you establish yourself in the workforce.
We can also help you explore employer-sponsored health insurance and state Medicaid programs that allow working people with disabilities to maintain coverage while earning higher incomes.
Your transportation needs depend heavily on location, disability status, and job requirements. Public transportation may be cost-effective in urban areas, while rural employment might require vehicle ownership or rideshare services. Paratransit services provide door-to-door transportation for disabled people in many communities, often for less than traditional taxi or rideshare options, while providing accessibility accommodations.
Professional clothing assistance programs available through vocational rehabilitation agencies, disability service organizations, or workforce development centers—and programs that help disabled workers obtain needed technology—further reduce the financial barrier to employment.
Disability Services of America provides comprehensive benefits planning and career counseling to help clients create realistic financial transition plans. Discover how we can support your successful transition to work.