SSDI vs. SSI: Here’s What You Need to Know
Important: We updated this page in September 2024 to make sure all info is correct based on current SSA guidelines. When it comes to types of disability benefits, most people think of Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). While both programs offer financial assistance to disabled individuals, there are some important differences. Below, we’ll explain how each program works, eligibility requirements for SSDI vs. SSI, and more.
What Is SSDI (Social Security Disability Insurance)?
Social Security Disability Insurance (SSDI) is an earned benefit for those who spend their working years paying into the Social Security trust fund. It pays monthly benefits to disabled people with a qualifying work history and their eligible family members. Once you reach retirement age (67), SSDI payments automatically change over to Social Security retirement benefits.
What Is SSI (Supplemental Security Income)?
Supplemental Security Income (SSI) is a federal program that helps children and adults who are disabled, blind, or over 65 years old. SSI benefits cover necessities such as food, clothing, and shelter specifically for households with limited income and resources. SSI payments can continue for life, as long as you meet the limited income and asset requirements. However, you cannot get Supplemental Security Income payments for any dependent family member after approval. This is yet another major difference in SSDI vs SSI.
SSDI vs. SSI Eligibility: Key Differences
Qualifying Rules for SSDI
To qualify for Social Security Disability Insurance (SSDI) benefits, you must meet all of these requirements:
- First, you must meet Social Security’s definition of “disabled” which an independent doctor usually confirms. This happens at a free medical exam that costs you nothing. But if you skip it, the Social Security Administration will absolutely reject your application.
- Second, you must be unable to work in any job for at least 12 months, specifically because of a medical condition. If you can go back to work in less than one year, the SSA will say you’re not disabled.
- Third, you as an individual must have no more than $1,550 in monthly earned income. (That amount goes up to $2,590 if you apply because you are blind.) In other words, your spouse’s work income does not count towards that total.
- Fourth, you must be between 18 and 66 years old when you apply for SSDI benefits. If you’re already 62 and drawing early retirement from Social Security, then unfortunately, you will not qualify.
- Lastly, you must have worked 5 in the last 10 years full time while paying FICA payroll taxes. FICA stands for “Federal Insurance Contributions Act,” and it pays into both Social Security and Medicare. (Employers also refer to them as Social Security taxes.)
Checking Your Eligibility for SSI
The Supplemental Security Income (SSI) program uses slightly different rules to decide who can get those disability benefits:
- Financial need. You must have very low income and few assets in order to qualify for SSI benefits. In 2024, that means everyone in your home must make less than $1,550 in combined monthly income. This requirement is one of the major SSDI vs. SSI differences.
- Work history. Unlike SSDI, SSI benefits come from the general tax revenue. So, you don’t need recent (or any) work history to receive SSI benefits.
- Disability status. Blind individuals and people with disabilities aged 18-64 can qualify for both SSDI and SSI. But if you’re at least 65 years old, then your age and financial need is what qualifies you for SSI. The only requirement after approval is staying low income with few financial resources.
- Unearned income. Unlike SSDI, all financial resources available to you count towards your SSI income and asset limit. Things like child support, alimony, SNAP, TANF, or living with a relative rent free are all “countable income.”
How the Social Security Administration Calculates SSDI vs SSI Benefits
The amount of SSDI benefits you receive each month depends on how much you paid in Social Security payroll taxes during your working years. To find your payment amount, the SSA averages your highest wages earned over your work history. Then, they make adjustments to account for inflation. Your SSDI payment should equal about 40% of your average monthly work wages. Today, the average monthly SSDI benefit amount is $1,537. The maximum federal benefit rate for SSDI payments in 2024 is $3,822.
If you are successful, your monthly SSDI payments usually start no sooner than six months after your application date. This is because there’s a five month waiting period under federal law before anyone can receive SSDI benefits.
The most any individual can receive in SSI benefits for 2024 is $943 each month. Eligible couples can receive no more than $1,537 in monthly SSI benefits. Applicants under age 65 must either prove they’re blind or disabled for SSI eligibility. Since the SSA reviews these claims the same way they do applications for SSDI benefits, the medical exams for both programs are the same.
If the agency approves your claim, your Supplemental Security Income SSI payments can start as soon as the following month. There is no required waiting period for SSI benefits.
Both SSDI and SSI Provide Health Insurance After Approval
Once the Social Security Administration approves your SSDI vs. SSI claim, you will also receive health insurance. See when your health care coverage should begin below:
- Medicaid coverage begins the same month as your first SSI benefits payment. Your state determines whether you receive automatic enrollment or need to apply separately for Medicaid.
- Medicare coverage starts 24 months your first SSDI payment goes through, with two rare exceptions. If you have Amyotrophic Lateral Sclerosis (Lou Gehrig’s disease), then you can skip this waiting period. Anyone currently on dialysis for kidney failure can also get early access to Medicare without having to wait for 2 years first.
Pro Tip: File your claim at your local Social Security office and mention you have ALS. This will greatly speed up your claim review and get both SSDI and SSI benefits paid faster!
How to Get Free Expert Help with SSI vs. SSDI Claims
If you’re thinking of filing for benefits, having an experienced Social Security disability advocate or attorney on your side is key. Experienced legal assistance can help you in the following ways:
- File your claim in a timely manner.
- Handle your appeal if you’re initially denied disability.
- Nearly triples your chances of disability approval within 6 months of your filing date.
- If the SSA doesn’t award you disability payments, then you owe your lawyer $0. And if you’re successful, then you only owe one small fee taken out of your back pay award. In other words, you will likely never pay any money directly out of your own pocket to your attorney.
- Help you gather strong medical evidence that supports your claim (or pay for medical records if you cannot).
Even knowing whether to apply for SSDI vs. SSI can confuse many people. There are dozens of forms to complete and documents you need to submit with your SSDI vs. SSI applications. Why risk going up to 3 years with no income when you don’t have to? You can speak with a disability attorney for free by phone before you apply for any benefits. In fact, we can connect you with a local attorney who can answer all your claim questions in private, free of charge.
Want to know your approval odds before you start the application process? Click the button below to connect with a nearby advocate for a free claim evaluation and see if you may qualify:
