What is the difference between SSDI and SSI?
Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are two programs designed to provide financial assistance to individuals who are unable to work due to a disability. While both programs aim to support disabled individuals, there are significant differences in eligibility criteria, funding sources, and the amount of benefits provided.
Eligibility Criteria
SSDI is available to individuals who have worked and paid into the Social Security system through payroll taxes. To qualify for SSDI, a person must have earned enough work credits, which are based on the number of years and amount of earnings. The specific number of credits needed depends on the individual’s age and work history. Additionally, SSDI recipients must have a medical condition that meets the SSA’s definition of disability and is expected to last at least one year or result in death.
On the other hand, SSI is a needs-based program that provides benefits to individuals who have limited income and resources. Eligibility for SSI is not based on work history or contributions to the Social Security system. Instead, it focuses on the individual’s financial situation. To qualify for SSI, a person must have limited income, limited resources, and meet the SSA’s definition of disability.
Funding Sources
SSDI is funded through payroll taxes paid by workers and their employers. The Social Security Trust Fund holds the funds, and they are used to pay SSDI benefits. As a result, SSDI benefits are not means-tested, meaning that the amount of benefits a person receives is not affected by their income or resources.
In contrast, SSI is funded through general tax revenues. This means that the amount of benefits a person receives is based on their financial need. SSI benefits are designed to provide a minimum level of income to eligible individuals, ensuring they have enough resources to meet their basic needs.
Benefits Amount
The amount of benefits a person receives under SSDI and SSI varies. SSDI benefits are calculated based on the individual’s work history and earnings. The average monthly SSDI benefit in 2021 was approximately $1,258. However, the actual amount can vary significantly depending on the individual’s earnings record.
SSI benefits, on the other hand, are set at a fixed amount each month. In 2021, the federal SSI payment amount was $794 per month for an individual and $1,191 per month for a couple. However, some states provide additional payments to SSI recipients, which can increase the total monthly benefit.
Conclusion
In summary, the main differences between SSDI and SSI lie in eligibility criteria, funding sources, and the amount of benefits provided. SSDI is based on work history and contributions to the Social Security system, while SSI is needs-based and funded through general tax revenues. Understanding these differences can help individuals determine which program is best suited to their situation and needs.
