Can You Receive Social Security Disability if You Have Annuities?

You can apply for Social Security disability if you have enough work credits paid in to the Social Security system and have worked a minimum number of years in the past 10. Social Security will examine your medical records closely and ask you to fill out numerous forms to support your claim. Fortunately, there is no limit on assets, including annuities.

Eligibility for Social Security Disability

Your eligibility for Social Security depends on two important factors: payroll tax contributions and work history. When you file an application, Social Security will check your records and evaluate your payments in to the system. You cannot earn more than ​$1,310​ if you are not blind and no more than ​$2,190​ per month if you are blind in order to qualify for SSDI. These limitations do not include the income from an annuity because an annuity is considered one of the three supporting legs of retirement that the government encourages people to build.

You must also meet the "duration of work" test: you must have worked a minimum amount of time in the last ​10 years​. This minimum work duration rises gradually as you get older and averages about ​five​ out of the last ​10 years​.

Eligibility with Annuity Accounts

Personal assets for disability eligibility have no limit. You may have annuities, IRAs, savings accounts, investment accounts – any form of savings – in an unlimited amount, and still file a Social Security disability application.

Social Security will not ask you for any information on these assets before it screens your application. However, having resources can limit your eligibility for Supplemental Security Income or SSI, another disability program that is means-tested.

SSI Eligibility Requirements

If you do not qualify for Social Security disability, you might still qualify for SSI benefits. However, SSI is means-tested, meaning you can't have more than a maximum amount of resources and still be eligible. For single people, that limit stands at ​$2,000​; for married couples, the limit is ​$3,000​ (as of 2021).

Resources includes savings in any form, including the cash value of annuities, as well as non-exempt property such as a second car, rental property, jewelry and other valuables and investments.

Application Process for Social Security

When you apply for disability, Social Security will screen your work and payment record but does not generally verify your assets, trusting you will be aware of the resource limits for SSI. If you win an SSI claim, you will be asked to attend an appointment at your local Social Security office, where a clerk will take information about your bank accounts, savings and property, all of which will be verified.

If you are found to have assets exceeding the resource limits, the agency will deny your claim even if you are found medically disabled. You will have to reapply at a future date when your resources fall under the limits. You might want to consider waiting to apply if you have proof of income within the last six months to a year that exceed the income limitations.