The Differences Between SSDI and SSI Benefits

The “alphabet soup” of Social Security can be confusing. Social Security Disability (SSD) and Supplemental Security Income (SSI) are the two disability programs administered by the federal government. It is common for people to use the names or abbreviations of these programs interchangeably, however they are both very different. An individual can be eligible for both, one, or none.

Applying for Social Security benefits can be a real challenge. Just trying to wade through the eligibility qualifications for Supplemental Security Income or Social Security Disability can be frustrating. Many people opt to seek assistance when they are applying for SSI or SSD.

In summary, Social Security Disability (SSD) is a broader term that includes various disability benefits programs, while SSDI specifically refers to a program within SSD that provides disability benefits to individuals with a sufficient work history.

Social Security Disability consists of two main programs: SSDI (Social Security Disability Insurance) and SSI (Supplemental Security Income).

If you have become disabled and need to file for disability, the application process can be overwhelming. However, there are ways to get through it. Your first step is to identify the most important questions that need to be answered before you apply:

• Which program will I be eligible for?
• What programs are available to me?
• What are the differences between the programs?
• Which program is better?
• Which program should I apply for?

The General Differences Between SSDI and SSI

SSD benefits are available to individuals who have a qualifying disability, but eligibility criteria and the number of benefits can vary depending on the specific program.

SSDI (Social Security Disability Insurance): SSDI is a specific program under the umbrella of SSD. SSDI is for individuals who have worked and earned enough (by working long enough and recently enough) work credits to be eligible for benefits. Work credits are based on the individual’s work history and the amount of income subject to Social Security taxes.

SSI is a needs-based program intended for individuals with limited income and resources, regardless of their work history. This means that individuals who may not have earned enough work credits for SSDI could still be eligible for SSI if they meet the income and resource requirements. The SSI program is for people who haven’t worked or have only worked every now and then.

The benefit amount for SSI is set by the federal government as a fixed amount that is universal for all recipients. SSI benefits are not based on work history but are determined by financial need. Eligibility is based on income, resources, and living arrangements.

One important point about SSI is that there are some income and asset limits that must be met. One vehicle and one home aren’t counted as assets for the purpose of determining assets. Your other assets can’t equal more than $3,000 if you are a married couple or $2,000 if you are an individual. We can help you learn more about these asset limits.

What Benefits Are Available?

Social Security disability (SSD, or SSDI) benefits can be paid to a disabled person who worked long enough to earn the required number of work credits to be eligible. There are many benefits to SSD benefits, such as:

• You can be paid past-due disability benefits up to 12 months prior to your filing date.
• Your monthly benefit amount is likely higher than what the SSI program pays.
• There are no financial restrictions to eligibility (you can have 1 million dollars in the bank and still be paid SSD benefits).
• It is possible to be paid additional benefits if you have dependents.
• You are eligible for Medicare two years and five months after your date of disability.

A disabled widow or disabled adult child (ages 18-22) may also qualify for SSD benefits even if that person never worked.

The Differences in Eligibility Between SSDI and SSI

Both SSDI and SSI have similar criteria for determining a qualifying disability. The SSA uses a strict definition of disability, requiring that the individual’s impairment prevents them from engaging in substantial gainful activity (SGA) and will last for at least 12 months or result in death. They must demonstrate through medical evidence, treatment, and their own statements, that they are completely incapable of performing any work in the national economy.

Depending upon your situation, you may qualify for both types of benefits. There are strict guidelines that you must qualify for to meet the definition of disabled before your request gets approved. This information is not meant to provide legal advice, but rather to provide general information about Social Security Disability and Supplemental Security Income in Pennsylvania.

Social Security Disability Insurance (SSDI) Eligibility

To received Social Security Disability Insurance, you and your employer must have paid into the program through The Federal Insurance Contributions Act (FICA), which is a payroll tax. SSDI recipients will become eligible for the Medicare program (even if they are younger than 65)

SSDI is for individuals who have worked and earned enough (by working long enough and recently enough) work credits to be eligible for benefits. Work credits are based on the individual’s work history and the amount of income subject to Social Security taxes.

To qualify for SSDI, individuals must have a qualifying disability and meet the work credit requirements.

However, it is important to note that eligibility criteria, application processes, and benefit amounts may vary, so individuals seeking disability benefits should consult with the Social Security Administration or one of our attorneys to understand the specific requirements and details for their situation.

Supplemental Security Income (SSI) Eligibility

If you are not eligible for SSD benefits, the only other disability program is Supplemental Security Income (SSI) benefits. The rules for disability are the same, but there are many significant differences that make this type of benefit less advantageous by comparison to the SSD program.  Consider the following:

• SSI benefits can only be paid as of the date you file the application, and not prior.
• The maximum monthly SSI benefit is around $733, and can be reduced by various factors such as food and shelter provided to you by others.
• You, your spouse, and sometimes your household cannot have income or resources beyond the SSI limits set by Social Security.
• You cannot receive any additional payment of SSI benefits because you have dependents.
• You cannot receive Medicare, but can qualify for Medicaid if approved for SSI benefits.

Looks to the disabled person’s resources and assets to determine eligibility. Income, resources, or assets that exceed Social Security’s set limits will preclude eligibility for the SSI program. SSI recipients will be eligible for Medicaid.

What is written above is the short answer. I’ve often heard SSDI referred to as a program that requires a work history and SSI referred to as a needs-based program. This answer, though somewhat accurate, is technically incomplete and vague. View SSDI as a conventional insurance policy; once you stop paying premiums, your insurance coverage will eventually lapse. Generally speaking, your SSDI coverage will expire approximately five years after you stop working. This date is referred to as your Date Last Insured (DLI). In order to receive SSDI benefits, you must be found disabled by Social Security on or prior to your DLI. If you want to know more about your personal eligibility for SSDI, as well as other Social Security programs, go here and create your own personal account.

As previously stated, SSI does not require FICA contributions. An individual’s eligibility is determined based on income, resources, or assets available to that individual and these resources can preclude eligibility for the SSI program. In some cases, eligibility might only be reduced. For example, if a person is awarded SSI benefits and they receive food and shelter at no cost to them, the dollar amount of monthly SSI benefits could be reduced by a certain amount. SSI eligibility is determined at a Pre-Effectuation Review Conference (PERC appointment). Once a person is found medically eligible for SSI benefits, Social Security will schedule a PERC appointment to determine final eligibility as well as eligible amounts.

The Differences in Disability Benefits if You Are Married

If a person who is receiving SSI benefits gets married, it could potentially negatively impact their benefits eligibility. Their spouse’s income and assets, if high enough, could potentially cause the SSI recipient to no longer pass the means-test for SSI and thus no longer be eligible for such benefits.

Meanwhile, a marriage generally will have no negative impacts on an SSDI recipient’s eligibility for continued benefits eligibility. Additionally, getting married can also make an SSDI recipient’s spouse eligible for benefits.

Which Program Should You Apply For?

So, which program should you apply for if you decide you need to apply for disability? Should you apply for both programs? Which one is better to apply for?

It’s not a question of better for most; you should apply for the program whose eligibility requirements you meet. If you are eligible for SSDI, but you have a short work history, low earnings, part-time earnings, or sporadic earnings, then you may want to apply for both SSDI and SSI to supplement a potentially low SSDI monthly payment. If your SSDI monthly amount would make you ineligible for SSI, then you would likely apply only for SSDI. Even some young adults that lack a work history could be eligible for SSDI benefits if found disabled prior to age 22 and they meet certain additional requirements. There is no single answer to address all possible circumstances.

The Application Process

The application processes for SSDI and SSI are similar, but there are differences. Both applications involve submitting detailed medical and work history information, and the SSA evaluates the information to determine eligibility.

One of the big differences is how your work history plays a part in your eligibility for each program. Asset and income limits are also considered, as are your disability and the effects it has on your ability to work.

It is common for individuals to apply for both SSDI and SSI simultaneously if they are unsure of their eligibility for one or the other.

Benefits Amount

When it comes to initial claims decisions, there are differences in what the eligibility requirements for benefits are and how the number of benefits for granted claims is determined.

The number of benefits for SSDI is based on the individual’s earnings history, while SSI benefits are fixed and are subject to adjustment based on income and living arrangements.

In Pennsylvania, as in other states, individuals seeking disability benefits should contact the local Social Security office or visit the SSA website to get information specific to their situation. Consulting with an attorney or other professionals specializing in Social Security disability claims may also be helpful in navigating the application process and understanding eligibility criteria.

The differences between these programs not only come into play when a person is applying for benefits, they can also come into play after a person secures benefits. For example, the effect that major life changes have on continued benefits eligibility can differ quite a bit between the two programs.

Take, for instance, one of the substantial changes that can happen in an individual’s personal life: getting married.

If a person who is receiving SSI benefits gets married, it could potentially negatively impact their benefits eligibility. Their spouse’s income and assets, if high enough, could potentially cause the SSI recipient to no longer pass the means-test for SSI and thus no longer be eligible for such benefits.

Meanwhile, a marriage generally will have no negative impacts on an SSDI recipient’s eligibility for continued benefits eligibility.

Our Disability Attorneys Can Help

Understanding the differences between the SSDI and SSI programs can be especially important for disabled individuals who are planning to apply for federal disability benefits or who are already receiving federal disability benefits. Knowledgeable disability attorneys can be a reliable source for helpful explanations of such differences.

Because every person’s situation is different, I have only given a very general treatment to the topics of SSDI and SSI. If you still have questions (and you should!) and to determine what program(s) you should apply for, it’s advisable you consult with the Social Security Administration or, of course, an attorney to address your particular circumstances.