When it comes to financial assistance for individuals with disabilities, two primary programs are available: Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). While both programs provide support, they have distinct differences in their eligibility criteria, benefits, and financial aspects. Let’s take a look at the differences between SSI and SSDI to help you better understand these programs.
SSI
Supplemental Security Income (SSI) is a needs-based program designed to provide financial assistance to individuals with limited income and resources. It caters to those who are aged, blind, or have a disability. SSI is funded by general tax revenues and does not require prior work history for eligibility.
SSDI
Social Security Disability Insurance (SSDI) is an earned benefits program that provides financial support to individuals who have worked and paid Social Security taxes. To be eligible for SSDI, an individual must have a qualifying disability and a sufficient work history, which is determined by the Social Security Administration (SSA).
Different Criteria
One of the primary differences between SSI and SSDI lies in their eligibility criteria. SSI eligibility is based on financial need, considering an individual’s income and resources. On the other hand, SSDI eligibility is determined by an individual’s work history and the severity of their disability, without considering their financial situation.
Access to Different Benefits
While both programs provide financial assistance, the benefits offered by SSI and SSDI differ. SSI recipients are automatically eligible for Medicaid, which provides health care coverage. In contrast, SSDI recipients become eligible for Medicare after a 24-month waiting period from the date they start receiving SSDI benefits.
Financial Benefits
The financial benefits provided by SSI and SSDI can vary significantly. SSI payments are based on a federal benefit rate, which is adjusted annually. The financial benefits provided by SSI and SSDI have been updated for 2024:
SSI Payments: The maximum federal SSI payment for an individual in 2024 is $943 per month, and for a couple, it is $1,415 per month.
SSDI Benefits: SSDI benefits are calculated based on an individual’s average lifetime earnings before the onset of their disability. The average SSDI benefit in 2024 is $1,300 to $1,600 per month.
In 2024, Social Security Disability Insurance (SSDI) recipients will be able to earn up to $1,550 a month from work without risk to their benefits, up from $1,470 in 2023. The substantial gainful activity limit for 2024 is $1,550 per month ($2,590 if blind).
The Social Security Administration (SSA) announced a 3.2% cost-of-living adjustment (COLA) for 2024, which will increase the average monthly SSDI benefit for a disabled worker by $48, from $1,489 to $1,537, starting in January.
Contact a Benefits Representative to Learn More about the Difference Between SSI and SSDI
Understanding the differences between SSI and SSDI can be a lot to take in, and each individual’s situation is unique. If you have questions about these programs or need assistance determining your eligibility, contact a benefits representative today.
