Comparing and Contrasting SSI and SSDI
By: Connor W Kavanaugh CTFA, ChSNC
Date: August 14th, 2020
SSI vs. SSDI: What Are These Benefits and How Do They Differ?
The Social Security Administration provides two important benefit programs that provide financial assistance to individuals with qualifying disabilities. SSI and SSDI are two of the most common federal programs but are very different from each other. Let’s explore!
What is SSI?
Supplemental Security Income (SSI) provides a monthly cash benefit of $783 (2020) to individuals with qualifying disabilities with limited income and less than $2,000 in countable assets. This is the needs-based Social Security benefit that is funded from national tax revenues.
What is SSDI?
Social Security Disability Insurance (SSDI) supports individuals who are disabled and have earned enough work credits through their own employment to generate a monthly payment or have a parent that is retired, disabled or deceased and they are drawing from the parents earned work credits. If the onset of disability occurred prior to the individual with disabilities 22nd birthday, they are generally eligible to draw their own SSDI benefit based on what parents have paid into the Social Security system. We refer to SSDI as an entitlement benefit meaning that either the individual or a parent has paid for this benefit through Social Security tax to be eligible. There is no asset limit for SSDI eligibility! (But don’t forget about the Medicaid asset limit!). The disabled child is eligible for 50% of parents Social Security benefit when they retire and 75% when parents are deceased.
What is the difference between SSI and SSDI?
The major difference is that SSI determination is based on need meaning the individual would need to have limited income and limited assets ($2,000 for an individual) whereas SSDI determination is based on work credits. Both programs have the same definition of disability.
In addition, in most states, an SSI recipient will automatically qualify for Medicaid. A person with SSDI will automatically qualify for Medicare after 24 months of receiving their first SSDI check.
Can I have both SSI and SSDI?
Yes, it is possible that if you have both limited income/resources and a work history, you can qualify for both benefits.
How do I apply for SSI or SSDI?
You can apply for SSI online only if you are an adult with a disability. SSI applications are not available online for people applying for a child under age 18 with a disability or a non-disabled senior aged 65+. These individuals must visit their local Social Security office or call 1-800-772-1213 (TTY 1-800-325-0778) between 7 a.m. – 7 p.m., Monday through Friday.
You can apply for SSDI benefits online at any age. You also can apply by calling Social Security at the number above or at your local office.