Understanding the Difference Between SSI and SSDI

June 17th, 2024

Navigating the world of social security benefits can be complex, especially when trying to distinguish between Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). While both programs aim to provide financial assistance to individuals with disabilities, they have distinct eligibility criteria and benefit structures.

  1. Eligibility Criteria

SSI

SSDI

· Income and Asset Limits: SSI is a needs-based program designed to help low-income individuals who are aged, blind, or disabled. To qualify, the applicant must have limited income and resources. In 2024, the resource limit is $2,000 for an individual.

· Disability Requirement: For those applying based on disability, the applicant must have a medical condition that prevents them from working and is expected to last at least one year or result in death.

· Age Requirement: Individuals aged 65 or older, even without a disability, can qualify for SSI if they meet the income and asset limits.

· Work Credits: SSDI is an entitlement program, meaning the applicant must have worked and paid Social Security taxes for a certain number of years to qualify.

· Disability Requirement: The applicant must have a medical condition that prevents them from working and is expected to last at least one year or result in death.
  1. Benefit Calculation

SSI

SSDI

Based on financial need. The maximum federal benefit rate in 2024 is $943 per month for an individual. This amount is reduced by any countable income.

Based on average lifetime earnings covered by Social Security. The more an individual has paid into Social Security over the years, the higher their benefit will be. In 2024, the average SSDI benefit is around $1,400 per month, but this amount can vary significantly.

  1. Payment Days

SSI

SSDI

Paid on the first of the month. If the first falls on the weekend, payments are issued the Friday before.

For beneficiaries entitled to benefits prior to May 1997, paid on the third of the month. For beneficiaries who filed claims on or after May 1997, paid on the second, third, or fourth Wednesday of the month.

  1. Healthcare Coverage

SSI

SSDI

Typically qualifies recipients for Medicaid, a state and federal program that provides health coverage to low-income individuals.

After receiving benefits for 24 months, recipients become eligible for Medicare, a federal health insurance program primarily for individuals aged 65 and older, but also available to younger people with disabilities.

  1. Conclusion

Understanding the differences between SSI and SSDI is crucial for individuals who depend on these programs for financial assistance. Individuals looking to preserve public benefit eligibility must first understand what benefits they are receiving and the rules for maintaining those benefits. A special needs planning attorney can be helpful to clarify current benefit rules and ensure continuation of these essential supports.

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