[NYAPRS Enews] People with Disabilities Identify Obstacles to Financial Security

[Harvey Rosenthal]

People with Disabilities Identify Obstacles to Financial Security

Abt Associates  March 2, 2011

 

Focus groups recently conducted for the Social Security Administration
suggest that people with disabilities or whose children have
disabilities face many roadblocks to financial planning. "Some are
prevented from saving money by the demands of day-to-day survival," said
Katherine Dahlem, Senior Associate. "Others believe they have to forego
paid work in order to keep their benefits."

 

Abt Associates conducted these focus groups as part of its work with the
University of Wisconsin-Madison's Center for Financial Security, under a
contract with the Social Security Administration's Financial Literacy
Research Consortium. Four focus groups each were conducted with,
respectively,

*       adults receiving Supplemental Security Income (SSI) or Social
Security Disability Insurance (SSDI) who work or want to work; and

*       parents of children receiving child SSI/Medicaid benefits who
are aging out of the school system (primarily 16- to 22-year-olds).

 

Adults Receiving Disability Assistance Want to Work, But Fear Losing
Coverage

Many focus group participants wanted to be able to work, be productive,
and earn more. "The majority," said Dahlem, "wanted income caps to rise;
and wanted to be able to accept raises, bonuses, and other cash
incentives without losing medical coverage.

"I was recently offered a bonus...I had to deny the bonus. I have to
deny the raises coming up in October because...I am allowed to make a
certain amount of money per month and keep my disability. And I can't
live on what I am making part-time."

"Findings from the focus groups," Dahlem said, "suggested that people
with disabilities and their caregivers need information about financial
and estate planning, benefit rules and regulations, and employment
opportunities." Most participants with disabilities saw large roadblocks
to financial planning, including saving for their future. They said they
barely had enough to cover basic expenses, and no extra funds for
amenities or savings. Some had to use credit to pay for monthly expenses
and emergency needs; others were worried because they had no credit
record. Participants also expressed concerns about cutbacks in state
programs that they depend on such as job training and supplemental
health benefits.

 

Parents and Guardians Focus on Their Children's Future, Not Their Own

Parents and guardians of children aging out of child SSI benefits and
the school system said they needed experienced financial planners and
attorneys to help them address long-term financial and guardianship
issues. (It was especially difficult for families in rural areas to
obtain these professional services.) Many participants also looked to
their local school district's special education programs to help them
access information about benefit rules and regulations and local support
systems. The type of assistance available through their districts varied
greatly. People in these focus groups were less focused on saving for
their own retirement, because they felt that this was simply impossible.

"I don't have a plan for me, I plan for her. I am going to live as long
as I live, and whatever I leave, she gets."

The focus group findings revealed that the majority of participants are
under considerable stress as a result of their attempts to address
current and future financial and guardianship issues, remain in
compliance with Social Security rules and regulations, and address other
family and personal needs. The participants repeatedly emphasized the
need to obtain accurate, up-to-date information. Medicare and Medicaid
coverage was seen as being at least as important, perhaps more
important, than monthly cash benefits. Without this coverage,
participants said they would be unable to access health care without
facing financial ruin.

The focus groups on issues facing people with disabilities were part of
a broader project in which Abt Associates also conducted 18 focus groups
with mostly low-income individuals to explore how community-based
organizations might encourage better financial practices, including
higher savings rates, among low-income and vulnerable populations. The
focus groups gathered information on savings motives, practices, and
attitudes as well as opinions about the timing, content, and form of
financial education efforts. Findings suggest that educating low-income
and vulnerable populations about financial concepts is important.
However, efforts focused on behavioral changes, particularly
strengthening discipline around savings and spending, may be more
effective for promoting long-term financial well-being.

 

http://www.abtassociates.com/Page.cfm?PageID=41137 

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