Social Security Disability Insurance (SSDI)
and Supplemental Security Income (SSI) both pay benefits to
people that the Social Security Administration deems
disabled. Show With their similar initials and overlapping missions, the two programs can be easy to confuse — but they differ in fundamental ways. Here are some of the key distinctions. Who qualifies
How to qualify
As it does for the spouses and children of retirees, Social Security can pay additional benefits to the spouses and children of disabled workers. Adults who have been disabled since childhood may qualify for SSDI on a parent's record even if they never have worked.
In 2022, the maximum federal SSI payment is $841 a month for an individual and $1,261 a month for a couple receiving SSI jointly. Income up to those levels can result in your benefit being reduced; income above them can render you ineligible for the program. The resource limit is $2,000 for an individual and $3,000 for a couple. Not all income and assets count against the caps. For example, Social Security exempts the value of your home and about half of earnings from work, among other things. Financing and administration
Both workers and their employers primarily bear the cost of the program through payroll taxes. Benefits are paid out of Social Security's Disability Insurance Trust Fund. Payment amounts are based on your earnings history. In September 2022, the estimated average monthly SSDI benefit was about $1,363.
Social Security was put in charge of SSI when the program was established in 1972 to replace a patchwork of state programs that provided federally financed benefits for older, blind and disabled people in financial need. Most states offer supplemental benefits to SSI recipients on top of the federal payment. How they're similarThe Social Security Administration generally uses the same medical criteria and the same process to determine if a disability entitles an adult to SSDI or SSI. Collecting both benefits is permitted. The condition must be expected to last at least a year or result in death and must prevent you for doing most work. Social Security requires considerable medical evidence to back up a disability claim for either benefit. Although you can apply online for SSDI, and in some cases for SSI, the process will include an in-person or phone interview with a Social Security representative. Getting a decision generally takes three to five months, according to Social Security officials, but the time can vary depending on how long Social Security needs to get medical records and other relevant evidence. Military veterans and people with
particular severe medical
issues may qualify for expedited processing. Keep in mindA majority of applications for disability benefits are initially denied. If your application is rejected, you have the right to appeal, but getting a hearing can take a year or more. The Social Security Administration has a considerable backlog of cases. Navigating social security benefits can be confusing and overwhelming. Supplemental security income (SSI) and social security disability insurance (SSDI) are two of the most common social security benefits, but what's the difference between them? Which program (SSI vs. SSDI) is suitable for your situation? SSI and SSDI are both federal financial assistance programs overseen by the Social Security Administration (SSA). While SSI and SSDI serve
similar populations, though, they're different programs with different requirements, benefits, and funding sources. SSI is a federal benefit program that provides financial assistance to very low-income Americans who are blind, have a qualifying disability, or are over 65. SSI Eligibility Anyone may apply for SSI. To be eligible, though, you must be a blind, disabled, or elderly American who
also: SSI is a means-tested benefit. You must have limited income and assets
to qualify for SSI. As of June 2022, an individual must have less than $2,000 in financial assets to qualify for SSI. Some assets don't count against this limit, though, like your primary residence and car. The Social Security Administration uses a complex formula to determine if you meet the income eligibility requirements for SSI. Generally, you qualify if your income is $1,767 monthly or less as of 2022. SSI Funding U.S. Treasury general funds fund SSI.
While the Social Security Administration administers the program, it's not funded through social security taxes. Many states supplement federal benefits with additional payments financed by the state. SSI Regulations As a means-tested benefit, a change in your financial situation can change your eligibility for SSI or the amount of financial assistance you receive. You're required to inform social security of any changes in financial circumstances,
including: If you marry another SSI recipient, your payments will decrease, as the maximum couple's benefit is less than two individual benefits. Disability activists refer to this reduction in benefits as the 'marriage penalty.' Suppose, on the other hand, that your spouse is not an SSI recipient. In that case, social security will consider their
income when determining eligibility for benefits. SSI Healthcare If you receive SSI payments, you likely qualify for Medicaid. In many states, SSI recipients automatically receive Medicaid and don't have to apply. SSDI is an "insurance" program that pays benefits to disabled individuals and certain family members. SSDI Eligibility To qualify, you must have worked long enough and recently enough to be considered "insured". The length of time you're required to work varies by age — as you get older, you'll need more years of work to qualify. Social security credits determine SSDI payments. You earn credits by paying social security taxes. The more you pay in social security taxes, the more credits you get, up to a maximum of four credits per year. To qualify for SSDI, you must:
SSDI Funding SSDI is funded primarily by social security payroll taxes. Employers and employees each pay an SSDI tax of 0.9% on earnings up to social security's tax cap. SSDI Regulations SSDI is not means-tested, but you can lose benefits if you earn enough income. If you work while receiving SSDI, you must report your income to the SSA. Meanwhile, you may be eligible for SSDI without a work history if you meet specific requirements:
SSDI Healthcare If you receive SSDI payments, you automatically qualify for Medicare, even if you are under age 65. Most SSDI recipients must wait 24 months after disability benefits begin, though, before they are eligible for Medicare. If you have amyotrophic lateral sclerosis (ALS) or end-stage renal disease, you're exempt from this waiting period. The differences in SSI vs SSDI benefits include: SSI vs SSDI Eligibility Eligibility for SSI is based on age, blindness, disability, and income level. Eligibility for SSDI is based on disability and work history. SSI vs SSDI Benefit Amount SSI and SSDI have different benefit amounts. The average monthly SSI payment (January 2022) is $624. The
average monthly SSDI payment (as of January 2022) is $1,223. The maximum monthly benefit for SSI in 2022 is $841 for a single person or $1,261 for a married couple. The maximum monthly benefit for SSDI in 2022 is $3,345. SSI vs SSDI Healthcare In most states, people receiving SSI benefits automatically qualify for Medicaid as soon as their benefits begin. SSDI recipients qualify for Medicare after a 24-month waiting period from
the time benefits began — unless they have ALS or end-stage renal disease, in which case there's no waiting period. Which is better SSI or Social Security?SSDI usually pays higher benefits than SSI.
The average SSDI payment in 2022 is $1,358, while the average SSI payment is only $586 per month.
Can I get both Social Security and SSI?Many individuals are eligible for benefits under both the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) programs at the same time. We use the term “concurrent” when individuals are eligible for benefits under both programs.
What pays more SSI or Social Security?In general, SSDI pays more than SSI. Based on data from 2020: The average SSDI payment is $1,258 per month. The average SSI payment is $575 per month.
What are the 3 types of Social Security?Four basic types of Social Security benefits are paid based on the record of your earnings: retirement, disability, dependents, and survivors benefits.
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