The solution is to remove restrictions like "we will only give you disability/medicare if you have less than $2000 in 'non-acceptable' assets", or "you can only get food stamps if you make less than $20k/yr" or any number of horribly terrible things we do that effectively give very poor people, in an economic sense, marginal tax rates much much greater than 100%.
Punishing people for making more money is never the solution. Honestly this is one reason why UBI is so enticing... any benefit that is abruptly taken away at any point creates these horrible incentives.
I know someone who is on social security disability. They can't even save money to buy a car without losing their benefits. For medical reasons, they are unable to work a full-time job, but they could possibly work virtually part time. But if they even apply to a job they lose their benefits. And the amount they get from social security isn't even enough to pay housing and medical expenses, nevermind food. If they didn't have external support they'd be SOL.