SSDI or SSI: What Makes These Programs Different?

If you are disabled, you can receive help from the government in the form of SSDI or SSI. These two programs help disabled citizens pay for their basic needs. However, the two have different criteria for who to award money to and what you might be eligible for.

SSDI (Social Security Disability Insurance) is an entitlement program that you can access if you have worked before and paid into Social Security retirement benefits. The program allows you to access those benefits early because you have become disabled. SSI (Social Security Income) is for people who are in special financial need and are disabled. Because this program is funded completely by general taxes, there are stringent requirements that one must fulfill in order to receive it.

Here are some of the main differences between SSDI and SSI:

SSDI

  • Funded through payroll taxes.
  • Available to qualified people who have worked for a certain number of years and contributed to the Social Security trust fund through FICA Social Security taxes.
  • Earned after receiving a certain number of “work credits.”
  • Eligible for Medicare only after receiving SSDI for two years.
  • No maximum asset amount requirements.
  • Must be disabled for a five-month waiting period before receiving benefits.
  • Spouse and children (over the age of 18) are eligible for partial dependent “auxiliary benefits.”
  • Must be younger than 65 to qualify.

SSI

  • Funded by general fund taxes.
  • Based on financial need.
  • Awarded according to low income and low assets—does not deal with work history.
  • Can receive Medicaid if eligible for SSI.
  • Must have assets less than $2,000 (if single) or $3,000 (if a couple), excluding certain items like primary residence.
  • Can receive benefits instantly once approved.
  • No dependent benefits.
  • Must be blind, disabled, or 65 or older to qualify.

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What Do They Have in Common?

SSDI and SSI are both for people who are disabled or blind. However, the eligibility is different when it comes to how old you are. If you are over 65, you can apply for SSI and receive it if your needs match the requirements. SSDI does not cover non-disabled seniors. Those who are not disabled and over the age of 65 are qualified to receive Social Security retirement benefits.

Both programs provide benefits that help take care of your basic needs. Because SSI is a needs-based program, it provides the similar benefit amounts for everyone enrolled. The amount provided by SSI is flexible, meaning you can receive any amount up to the maximum dependent on your need.

On the other hand, SSDI is an entitlement program. Benefits vary according to formulas that the Social Security Administration uses to calculate your specific benefits. The best place to get an estimate of your SSDI benefits is on your Social Security statement. You can see this statement by creating an account on the Social Security Administration’s official website. You can also learn about your Social Security status and other important information at this site.

Even though both the SSI and the SSDI are administered through the Social Security Administration, they have very different application processes. To apply for SSDI, go to the SSA’s online application and follow instructions. SSI is a more difficult process, so we recommend applying at your local Social Security office or on the phone.