Navigating social security benefits can be confusing and overwhelming. Two of the most common social security benefits are Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). While they serve similar populations, they are different programs with different requirements, benefits, and funding sources1.
What is SSI?
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 651.
SSI Eligibility
Anyone may apply for SSI. To be eligible, though, you must be a blind, disabled, or elderly American who also1:
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Has low income
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Has limited financial resources
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Is a U.S. citizen or qualifying alien
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Resides in one of the 50 states, the District of Columbia, or the Northern Mariana Islands
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Is not absent from the U.S. for 30 consecutive days or more
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Is not institutionalized (e.g., hospitalized or incarcerated)
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Meets specific other requirements
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 SSI1.
SSI Funding
U.S. Treasury general funds fund SSI. While the Social Security Administration administers the program, it's not funded through social security taxes1.
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 receive1.
What is SSDI?
The main difference between SSI and SSDI is that SSDI is an earned benefit that has work requirements to qualify2. SSDI works more like insurance. If someone becomes unable to do their job because of a medical disability, they can apply for disability benefits2.
SSDI Eligibility
To be eligible for SSDI, you must meet work-related requirements2. Benefit amounts are based on an applicant's lifetime average earnings2. Through paycheck deductions, workers pay for SSDI with Social Security taxes2.
SSDI Regulations
SSDI doesn't have resource limits, meaning you can own stocks or other assets2.
Conclusion
While both SSI and SSDI provide benefits to individuals with disabilities, they differ in their eligibility requirements, funding sources, and regulations. Understanding these differences can help individuals navigate the complex world of social security benefits and determine which program is most suitable for their situation.
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