Administrative and Financial Barriers to Using ABLE Accounts for People with Disabilities

Abstract Context: This paper investigates barriers that people with disabilities face in using Achieving a Better Life Experience (ABLE) accounts. These accounts might be particularly beneficial for Supplemental Security Income recipients, who face a stringent $2,000 asset cap, but can save up to $100,000 in an ABLE account without jeopardizing benefits. Prior research indicates that few eligible persons use or know about ABLE accounts. Methods: We conduct qualitative interviews with caregivers who have opened (or chose not to open) ABLE accounts. We also analyze administrative data on Illinois ABLE accounts. We assess barriers to account take-up and explore the effectiveness of small financial incentives to encourage families to open ABLE accounts. Findings: We find low awareness of ABLE among eligible families. We also find large sociodemographic disparities. The top 12% of accounts hold more than half of total dollars held in Illinois ABLE accounts, while the bottom 50% percent of accounts hold only 9%. Roughly 40% of qualitative survey respondents report that they lack funds to make effective use of ABLE accounts. Conclusions: Our findings underscore the importance of focused efforts to support the long-term needs of disabled persons, and to reduce administrative burdens associated with ABLE accounts.