Navigating social security benefits can be confusing and overwhelming. Supplemental security income (SSI) and social security disability insurance (SSDI) are two of the most common social security benefits, but what's the difference between them? Which program (SSI vs. SSDI) is suitable for your situation? SSI and SSDI are both federal financial assistance programs overseen by the Social Security Administration: "Disability Benefits," "Disability Benefits | How You Qualify," "Overview of our disability programs," "Understanding Supplemental Security Income SSI Eligibility Requirements -- 2022 Edition." With their similar initials and overlapping missions, the two programs can be easy to confuse — but they differ in fundamental ways. Here are some of the key distinctions. AARP Membership — $12 for your first year when you sign up for Automatic Renewal Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. Join Now Who qualifies
How to qualify
As it does for the spouses and children of retirees, Social Security can pay additional benefits to the spouses and children of disabled workers. Adults who have been disabled since childhood may qualify for SSDI on a parent's record even if they never have worked.
In 2022, the maximum federal SSI payment is $841 a month for an individual and $1,261 a month for a couple receiving SSI jointly. Income up to those levels can result in your benefit being reduced; income above them can render you ineligible for the program. The resource limit is $2,000 for an individual and $3,000 for a couple. Not all income and assets count against the caps. For example, Social Security exempts the value of your home and about half of earnings from work, among other things. Financing and administration
Both workers and their employers primarily bear the cost of the program through payroll taxes. Benefits are paid out of Social Security's Disability Insurance Trust Fund. Payment amounts are based on your earnings history. In September 2022, the estimated average monthly SSDI benefit was about $1,363.
Social Security was put in charge of SSI when the program was established in 1972 to replace a patchwork of state programs that provided federally financed benefits for older, blind and disabled people in financial need. Most states offer supplemental benefits to SSI recipients on top of the federal payment. How they're similarGroceries Freshly 20% off a Freshly meal delivery subscription View Details See All See more Groceries offers > The Social Security Administration generally uses the same medical criteria and the same process to determine if a disability entitles an adult to SSDI or SSI. Collecting both benefits is permitted. The condition must be expected to last at least a year or result in death and must prevent you for doing most work. Social Security requires considerable medical evidence to back up a disability claim for either benefit. Although you can apply online for SSDI, and in some cases for SSI, the process will include an in-person or phone interview with a Social Security representative. Getting a decision generally takes three to five months, according to Social Security officials, but the time can vary depending on how long Social Security needs to get medical records and other relevant evidence. Military veterans and people with particular severe medical issues may qualify for expedited processing. Keep in mindA majority of applications for disability benefits are initially denied. If your application is rejected, you have the right to appeal, but getting a hearing can take a year or more. The Social Security Administration has a considerable backlog of cases. |