When Life Changes the Plan: The Overlooked Role of Disability in Financial Planning

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Written by: Nadine Burgos

Every financial plan begins with a vision of the future. For some people, financial independence means retiring comfortably. For others, it means owning a business, supporting family, traveling, or having the flexibility to make meaningful choices.

But financial independence can look very different for individuals navigating disability, chronic illness, caregiving responsibilities, or unexpected changes in health.

July 26 marks the anniversary of the signing of the Americans with Disabilities Act (ADA), a landmark moment that expanded access and opportunity for millions of Americans. Yet disability is still often treated as a separate conversation from financial planning. Disability is not only a healthcare issue. It is also an income issue, a retirement issue, an estate planning issue, and a family financial planning issue.

According to the Centers for Disease Control and Prevention (CDC), approximately 1 in 4 or 28.7% of adults in the United States have a disability. These disabilities may affect mobility, cognition, hearing, vision, independent living, or other areas of daily life.

This means disability planning is not a specialized conversation that applies only to a small group of individuals. It is a financial planning conversation that may affect clients across generations because financial plans are not created only for the life we expect; they are created for the life we experience.

When the Traditional Financial Timeline Changes

Many financial plans follow a familiar path:

Education → Career → Income Growth → Saving → Retirement

But life rarely follows a perfectly predictable timeline.

  • A person may experience:

  • A disability present from birth

  • A chronic illness diagnosis later in life

  • A workplace injury

  • A change in the ability to continue working

  • A child with special needs

  • A spouse or parent who requires caregiving support

  • Health changes associated with aging

These experiences can affect income, expenses, retirement timing, estate planning, and family responsibilities.

According to the CDC, disability prevalence increases with age, making disability planning an important consideration in retirement and longevity planning. Among adults age 65 and older, approximately 2 in 5 experience a disability. These disabilities can affect different areas of daily life, including hearing, vision, cognition, mobility, self-care, and independent living. This connection between aging and disability highlights an important planning consideration: retirement planning is not only about ensuring income lasts throughout a long life. It is also about preparing for potential changes in health, independence, and the support individuals may need over time.

This creates an important connection between disability planning and retirement planning. Many financial conversations focus on the question:

“Will I have enough money to retire?”

But another important question is:

“Will my financial plan continue supporting my independence if my circumstances change?”

Disability Planning Is Part of Comprehensive Financial Planning

Disability planning is often misunderstood as something that only applies to individuals who already identify as disabled. In reality, it is a broader conversation about protecting independence, flexibility, and choice.

Financial impacts can include:

  • Changes in income

  • Increased healthcare expenses

  • Employment interruptions

  • Caregiving responsibilities

  • Housing modifications

  • Long-term support needs

  • Estate planning considerations

Research from the National Disability Institute (NDI) highlights that individuals with disabilities often face financial barriers related to employment, financial access, and building long-term economic security. In NDI’s 2023 research, only 51% of working-age individuals with disabilities reported being able to pay all bills on time, while 46% reported experiencing unmanageable levels of debt. The research also emphasizes that the disability community is diverse, with financial experiences shaped by factors such as gender, race, ethnicity, and LGBTQIA+ identity. These differences reinforce why disability planning must be viewed as part of comprehensive financial wellness rather than a separate planning conversation.

For advisors, this means disability planning is not simply about one product, one account type, or one stage of life. It is about understanding how a client’s circumstances may affect their ability to earn, save, spend, and plan.

Why This Matters

Financial planning conversations often focus on measurable outcomes:

  • Savings rates

  • Investment performance

  • Retirement readiness

  • Tax efficiency

  • Risk management

These metrics matter. However, financial well-being also includes the ability to maintain independence, access opportunities, and make decisions aligned with personal values.

For someone living with a disability, chronic illness, or changing health circumstances, financial success may not always mean reaching a traditional milestone. It may mean:

  • Having flexibility in employment

  • Maintaining stable housing

  • Accessing appropriate care

  • Supporting family members

  • Preserving autonomy

The definition of financial independence is personal.

Three Things Advisors and Clients Should Keep in Mind

1. Financial Independence Does Not Have One Definition

Traditional planning often measures success through:

  • Net worth

  • Retirement accounts

  • Income replacement

  • Investment growth

These measurements are important, but they do not capture every person’s financial reality. For some individuals, financial independence means having the resources and support systems necessary to maintain choice and dignity.

For Advisors:

Advisors can help clients explore whether their financial goals reflect their actual lives and priorities. Questions worth discussing include:

  • What does financial independence mean for this client?

  • Are we planning for the client’s actual circumstances or only a traditional retirement path?

  • How might health changes affect future goals?

  • Does the client have appropriate protections in place?

A strong planning conversation recognizes that independence is not defined the same way for every client.

For Clients:

Consider asking yourself:

  • What does independence mean to me?

  • If my health or circumstances changed, would my financial plan support my choices?

  • Have my financial priorities changed over time?

  • Am I planning for the life I have today, not only the life I expected?

2. Planning for Disability Is Planning for Uncertainty

Many people avoid disability conversations because they associate them with worst-case scenarios, but financial planning already involves preparing for uncertainty.

We plan for:

  • Market volatility

  • Inflation

  • Job changes

  • Emergency expenses

  • Longevity

Health changes are another form of uncertainty that deserves attention.

According to the U.S. Bureau of Labor Statistics, employment rates differ significantly between people with disabilities and those without disabilities, highlighting the connection between health, work, and financial security. In 2025, the unemployment rate reported for people with a disability rose to 8.3% versus 4.1% for people without a disability.

For many households, the ability to earn income is one of their greatest financial assets. Protecting that ability, or preparing for changes to it, is a fundamental part of financial planning.

For Advisors:

Advisors can help clients evaluate:

  • Emergency savings

  • Disability insurance

  • Long-term care considerations

  • Estate documents

  • Beneficiary designations

  • Business continuity planning

  • Caregiving responsibilities

The goal is not to create fear; the goal is to create confidence.

For Clients:

Consider asking:

  • If my ability to work changed, what resources would support me?

  • Are my insurance policies and legal documents current?

  • Does someone I trust know my wishes?

  • Have I discussed future care needs with my family?

Preparation creates options.

3. Aging, Disability, and Estate Planning Are Connected

Disability is not always something that happens early in life. For many individuals, disability-related needs emerge through aging. A longer lifespan is a significant achievement, but it also creates new planning considerations. People may face:

  • Increased healthcare expenses

  • Mobility changes

  • Cognitive decline

  • Long-term care needs

  • Family caregiving decisions

Retirement planning is not only about having enough assets; it is about maintaining quality of life throughout different stages.

For Advisors:

Advisors can help clients look beyond retirement income projections by discussing:

  • Future care preferences

  • Family responsibilities

  • Estate planning needs

  • Decision-making authority

  • Legacy goals

These conversations may feel uncomfortable, but they are often among the most valuable planning discussions.

For Clients:

Consider:

  • Who would help manage finances if I could not?

  • Are my wishes documented?

  • Have I discussed future care preferences?

  • Does my estate plan reflect my current circumstances?

Closing Thoughts

Disability planning reminds us of an important truth: Financial independence is not a universal formula. The purpose of financial planning is not only to maximize wealth under ideal circumstances; it is to create resilience when circumstances change.

Whether disability is present from birth, develops through illness or injury, or appears as part of aging, thoughtful planning can help protect what matters most:

Choice.
Dignity.
Security.
Independence.

Because the strongest financial plan is not simply one that prepares people for the future they imagine; it is one that supports them through the future they experience.

Related: Researchers Find a Predictable Pattern of Emotions Throughout the Financial Planning Process