Why is financial planning for people with disabilities important? The fact is that government payments for special needs individuals do not cover their daily expenses. While the government assists, these payments do not cover essential needs like food, shelter, and transportation. Fortunately, MassMutual, a life insurer based in Springfield, Massachusetts, offers financial planning assistance and advice for families of special needs individuals. There are several ways for these families to funnel money into these special needs individuals’ accounts.

ABLE accounts

One of the best ways to plan for someone with a disability is to set up an ABLE account. These are tax-advantaged savings accounts set up through your state. The money will grow tax-free and will not affect eligibility for government assistance programs. The ABLE account also allows the disabled individual to earn money. This account is a great way to save and make money. In addition, it is accessible to disabled individuals.


If you have a disabled adult child, you can set up an RDSP to cover their future medical and educational expenses. It is a great way to get back on track financially, and you can also help them receive retroactive government benefits. In addition, it’s a great way to develop a stronger relationship with your beneficiary while assisting them in building a better future. To learn more about how to set up your child’s RDSP.

Estate planning

Aside from estate taxes, people with disabilities often need to plan for the financial security of their dependents. In addition, they should establish a health care directive to specify their wishes regarding medical treatment and a living will to determine the conditions under which they would accept life-prolonging procedures. Often, a disabled person receives income from several sources, so it is important to list these resources and their recipients in advance.


While crowdfunding may be to raise money for a particular need, it is essential to remember that raising funds for a person with a disability could negatively affect their access to public benefits. That’s why it’s necessary to understand the rules before setting up a crowdfunding campaign. For example, a special needs trust is a financial planning tool that can help families set aside funds for a particular need.

Social security

For people with disabilities, the most critical aspect of retirement planning is the ability to maximize the benefits that Social Security provides. The program pays a monthly disability benefit, on average, of $1234. Unfortunately, that amount barely covers basic living expenses, whereas the intermediate annual poverty level is $12,140. However, even a modest disability payment can dramatically impact a disabled person’s life. With these funds, disabled individuals can meet basic needs and avoid financial ruin.


Financial planning is crucial to their health when people have a disability. A disability can leave people with limited income, so they must evaluate their financial resources and assess how to adjust their spending to make room for new costs. In addition, parents of disabled children should explore public and private resources to help pay for medical care and therapy. Many communities also offer young adult programs geared toward helping people with disabilities learn financial literacy and life skills.

Section 8 housing

If you need Section Eight housing and are a disabled person, you may qualify for the program. Disabled renters must participate in the Family Self-Sufficiency Program to help them become independent. This program helps them save their money for home ownership by placing increases in rent into an escrow account. After five years, the family can withdraw this money to purchase a home.