SSI OR SSDI: Which Aid Suites Best for You?

Brief Overview of Both Schemes

The Social Security Administration (SSA) administers two programs that provide benefits to disabled individuals: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). SSDI is available to individuals who have worked and paid into the Social Security system but are no longer able to work because of their disability. SSI, in contrast, is a needs-based program that provides benefits to disabled individuals who have no work history and limited income and resources.



Purpose and Eligibility Criteria

They have slightly different purposes. SSDI will provide financial assistance to disabled individuals who have contributed to the Social Security system via payroll taxes. To qualify for these benefits, applicants must have a qualifying disability that prevents them from performing a substantial gainful activity (SGA) and have to have worked a certain number of years and earned sufficient work credits.

SSI benefits, on the other hand, are for disabled working-age adults and children with limited income and resources who don't qualify for SSDI. To be eligible for SSI, work history doesn't matter. Applicants must have a qualifying disability, be at or below certain income and resource limits, and be U.S. citizens or legal residents, with a few exceptions.



Source of Funding

SSDI benefits are funded through payroll taxes collected from workers and their employers under the Federal Insurance Contributions Act (FICA). The taxes are deposited in the Social Security Trust Fund and used to pay SSDI benefits to disabled individuals insured by the program.

SSI benefits, in contrast, are funded through general federal revenues, including income tax and other sources. According to the SSA, because the SSI program is based on need, it is not dependent on individual work history or contributions to the Social Security trust fund.

Benefit Calculation

A person receives SSDI benefits depending on their average lifetime earnings before the disability begins. The SSA's formula for calculating an applicant's primary insurance amount (PIA) provides that person's monthly benefit amount. This maximum benefit may, however, be subject to annual adjustments based on changes in the cost of living.

SSI benefits, in contrast, are set by the federal government and are the same nationwide. This monthly benefit for 2018 is being adjusted annually due to changes in the cost of living. However, this amount may be reduced if the person receiving benefits has other sources of income or assistance.



Types of Benefits

SSDI provides monthly cash benefits to eligible disabled individuals and their dependents (spouses, children). After a two-year waiting period, these individuals may also qualify for Medicare.

On the other hand, SSI provides monthly cash benefits to eligible disabled individuals under 65 (including blind or, in some cases, elderly) and families, which can include Medicaid coverage, food stamps, and housing.



Medical Criteria

SSDI and SSI have strict medical criteria that applicants must meet to qualify for benefits. The SSA utilizes a five-step evaluation process to decide eligibility, which assesses the severity of the applicant's impairment, the applicant's ability to perform work-related activities, and the applicant's age, education, and work experience.

Work Requirements

SSDI recipients have various work incentives and work requirements, such as the trial work period and the extended period of eligibility, which allow you to test your ability to work without losing your benefits. However, you must report any work activity and earnings to the SSA to prevent overpayments.

SSI recipients must adhere to income and resource limits, and any work or other income they receive could impact their eligibility. SSI also provides work support and incentives, such as the Plan to Achieve Self-Support (PASS) and the Ticket to Work program. These supports and the many other SSA Work Incentives help SSI recipients return to work and achieve financial independence.

Choosing the Right Schemes for Your Needs

When deciding which disability program is right, you must consider your work history, income, resources, and medical condition. An experienced attorney specializing in disability law, such as Eric R. Hunt, can provide critical counsel and assistance throughout the application process. Palm Springs, CA, residents can rely on Eric R. Hunt for help with Social Security and Supplemental Security Income, knowing that he has helped numerous clients obtain the benefits they deserve.

Although Social Security Disability Insurance and Supplemental Security Income ultimately have the same goal of providing financial assistance to those with disabilities, they have different eligibility criteria, benefit amounts, and funding sources.

By understanding these Social and Supplemental Security Income differences, individuals needing assistance and their legal representatives, such as attorneys in disability law like Eric R. Hunt, can better position themselves to seek the required help. Individuals and their families can move toward a more stable financial future through assistance and representation.

Related read: How to get started with disability claim, How to find social security attorney