Clearing Social Security Confusion:

Updated on: September 20th, 2024 • Resource: Financial Tips

Comparing SSI and SSDI

Social Security benefits can seem complex and confusing to recent retirees. A 2003 study revealed, “between 20 and 50 percent of pre-retirees are unaware that their monthly benefits could be reduced if they keep working after claiming Social Security.” The complex system is partly to blame, explains financial expert Michael Ryan, who notes, “The intricacies of Social Security definitely contribute to this confusion.”

The Social Security Administration offers several benefits to Americans. Two of the most common options are Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). When determining which benefit is best suited for you, your loved one or your client, you must understand what each option entails as well as their eligibility criteria. While they largely serve the same population, the SSI and SSDI are not the same as they have different requirements and benefits. Below we’ll try to dispel any potential confusion by comparing the two types of benefits.

Help for Low-Income Americans: What is SSI?

SSI is a federal benefit program that is overseen by the Social Security Administration. The program offers financial assistance to Americans with low-incomes. To be eligible for this program, individuals must be blind, living with a qualifying disability, or above 65 years of age.

To qualify for SSI, you must meet the following criteria along with other specific requirements:

Income: Have a low income
Assets: Have limited assets
Citizenship: Be a U.S. citizen or an alien who meets certain criteria
Residence: Live in one of the 50 states of America, the District of Columbia, or Northern Mariana Islands
Travel: Not be away from the U.S. for 30 consecutive days or longer
Condition: Not be hospitalized or incarcerated

Federal Disability Insurance: What is SSDI?

SSDI is an insurance program managed by the Social Security Administration that offers benefits to individuals living with disability and certain qualified family members.

To qualify for SSDI, you must meet the following criteria:

Employment Type: Have been employed in roles eligible for Social Security
Disability Status: Have a qualifying disability that prohibits you from working for 12 months or more
Employment Duration: Have worked long enough and recent enough to qualify (20 years of your work credits must have been earned within the last 10 years)

By the Numbers: SSI vs SSDI Benefits Comparison

As mentioned before, both programs offer great benefits to individuals who are qualified, but the benefits are paid out differently.

Cash Benefit

Eligible participants in the SSI and SSDI will receive different amounts. In 2024, the average monthly payment for SSI is $698 (the maximum is $943 for a single person and $1,415 for a married couple) while the average monthly pay out for SSDI is $1,537.

Healthcare

The healthcare available to participants of the programs may be affected by their state of origin; however, you typically automatically become eligible for Medicaid at the same time your SSI benefits begin. On the other hand, participants in the SSDI program must wait two years after the beginning date of their benefits. This 24-month wait time is waived in cases where the program participant has amyotrophic lateral sclerosis (ALS) or end-stage renal disease.

Program Eligibility

In order to qualify for SSDI, you must have work history. This is not the case for SSI. To enlist in the SSI program, factors such as age, blindness, disability, and income are considered. SSDI is solely based on disability and work history. Also note that there are cases where an individual can be qualified and receive payment from both programs.

Caring for an elderly or disabled relative or friend can impede employment and cost money. Are you providing caregiver services to a loved one at home? Check out these articles from Mass Care Link for more advice and information.

Mass Care Link can also help you secure financial assistance to ease the burden. Contact Mass Care Link at 866-880-8889 or via info@masscarelink.org today to learn more.