Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) are both managed by the Social Security Administration (SSA), but that’s where most of their similarities end. The main difference between SSI and SSDI lies in their eligibility requirements and the source of the funds used to pay benefits.
SSI is a program designed to help aged, blind, and disabled individuals who have limited income and resources. It provides financial assistance to meet basic needs for food, clothing, and shelter. SSDI, on the other hand, provides benefits to you if you are “insured,” meaning you worked long enough and paid Social Security taxes.
Understanding what’s the difference between SSI and SSDI is essential for negotiating the application process and maximizing the benefits available. We can help. Contact our Richmond SSDI lawyers at 704-377-9157 today.
Overview of SSI and SSDI: Two Programs, Two Purposes
SSI and SSDI might seem interchangeable. After all, both programs are designed to support people who are unable to work due to a disability. But there are key differences between the two.
Social Security Disability Insurance (SSDI)
SSDI is designed for individuals who have worked and paid into the Social Security system.
SSDI operates much like an insurance policy for workers who become unable to continue working due to a severe, long-term disability.
If you have paid in enough through your taxes over the years, and you meet the medical criteria for a disability, you are entitled to benefits. SSDI payments are calculated based on your average past earnings. This includes the money you’ve earned from jobs where you paid Social Security taxes. The more you earn and the longer you work, the higher your monthly SSDI benefit will be.
Supplemental Security Income (SSI)
SSI is a program based on need, not prior work or contributions to Social Security. This program aims to help disabled individuals who have little or no income and assets. SSI supports those who are 65 or older, blind, or disabled and have limited resources to meet basic needs for food, clothing, and shelter.
The eligibility for SSI does not depend on work history but is strictly based on financial need.
SSI payments are based on a standard federal rate, which can change yearly. This amount might be less if you have other income, like wages from work you can still do or money from other sources.
This program is critical for many people who have never worked, have not worked recently enough, or long enough to qualify for SSDI.
Eligibility Requirements for SSI vs. SSDI
The eligibility criteria for SSI and SSDI are also very different.
SSDI Eligibility
Here are the key criteria for SSDI eligibility:
- Work Credits: Eligibility is based on the number of work credits you have earned. Typically, you earn up to four credits per year, and the number of credits needed to qualify for SSDI depends on your age when you become disabled.
- Recent Work: Generally, you must have worked five of the last ten years before your disability onset. Younger workers may qualify with fewer credits.
- Severity of Disability: SSDI requires that your disability is severe enough to prevent you from performing any substantial gainful activity (SGA) and is expected to last at least one year or result in death.
- Age: There is no minimum age requirement, but you must be younger than the full retirement age.
SSI Eligibility
Here are the requirements for SSI:
- Income: Your total income, including cash and Social Security benefits, must be below a certain threshold.
- Resources: You must have less than $2,000 in assets if single or $3,000 for couples. This includes cash, bank accounts, stocks, and property.
- Age or Disability: SSI is available to individuals who are 65 or older, blind, or disabled according to the SSA’s definition.
Medical and Financial Requirements Compared
The way SSI and SSDI programs handle medical and financial eligibility is very different.
Medical Requirements
The medical criteria for both SSI and SSDI are the same. To qualify for either program, an individual must have a disability that is severe enough to prevent them from working. The condition must be expected to last at least one year or result in death.
The SSA maintains a list of qualifying disabilities and uses a strict evaluation process to determine if an individual’s condition meets the necessary severity level.
Financial Requirements
While the medical requirements are similar, they have different financial qualifications.
SSI Financial Requirements
SSI is need-based, designed for individuals who have limited income and resources. To qualify for SSI, an individual must demonstrate significant financial need. The income limits are set according to a formula that considers various types of income and living arrangements.
Additionally, the resource limit for individuals is generally capped at $2,000, or $3,000 for couples.
SSDI Financial Requirements
SSDI does not consider current income or assets. Instead, eligibility is based on an individual’s work history and whether they have paid sufficient Social Security taxes. SSDI recipients are those who have accrued enough “credits” from their work earnings over the years.
When applying for SSDI, you need to have worked for at least five out of the last ten years. However, younger applicants may qualify with fewer work credits and lower contributions. You must also be at least 18 years old to apply.
Can You Qualify for Both SSI and SSDI at the Same Time?
You can qualify for both SSI and SSDI at the same time, and this is known as receiving concurrent benefits. This happens when someone qualifies for SSDI but their monthly payment is relatively low because they didn’t work for very long or earned lower wages throughout their career. If your SSDI payment falls below a certain threshold and you meet the strict income and asset limits set by the SSI program, you could receive SSI benefits in addition to your SSDI check.
Receiving both can help ensure you have enough financial support to cover basic living expenses. SSI can essentially “fill in the gap” where SSDI falls short, providing a much-needed financial cushion for those with limited resources.
If you think you might be eligible for both, it’s important to speak with an experienced disability attorney who can help you navigate the application process and ensure you’re getting all the benefits you’re entitled to.
Contact an Experienced Richmond SSDI Lawyer
Our Richmond disability attorneys at Hunter | Everage understand how confusing the Social Security system can be.
We’re here to guide you through every step of the application process, make sure your paperwork is complete, and fight for the benefits you deserve.
Contact our Richmond SSDI lawyers at 704-377-9157 to request a consultation.