Disability and the difference between SSDI and SSI
You can find a lot of misinformation about U.S. Social Security benefits on the Internet. Oftentimes, even Social Security representatives get things wrong. We hope the information here can help you recognize wrong or inconsistent answers as you learn about Social Security benefits.
Not sure where to start? The first step is determining which disability benefit is right for you: Social Security Disability Insurance (SSDI) and/or Supplemental Security Income (SSI). Both programs offer benefits for disabled individuals, but the non-medical eligibility requirements and benefits received are very different (see chart below for basic differences).
SSDI is awarded based on the work credits that a person has earned by paying into the Social Security system. A person can earn up to four credits per year. In 2016 you must earn $1,260 to get one credit. Holding any job where Social Security taxes are taken from your paycheck makes you eligible for Social Security disability and retirement. But generally, a person must apply for disability within five years of the last date he or she worked because work credits expire.
To be eligible for SSDI, a person must be between the ages of 18 and 65, and have a certain amount of earned work credits. There are no asset or resource limitations for SSDI. The amount a disabled person will receive in benefits is based on their average individual lifetime earnings. Someone who made $70,000 a year will receive more in benefits than someone who made $30,000 a year. The national average for SSDI payments in 2016 was $1,166 a month, but can range from $700 to $2,639, the maximum allowed benefit.
There is a five-month waiting period before benefit payout, which means that Social Security will not pay benefits for the first five full months from the date that a person is found disabled. However, there is also the potential to receive past due disability benefits, or back pay, under the SSDI program based on the date you are found disabled.
SSDI benefits include Medicare health insurance eligibility, but not until the disabled person has received 24 full monthly payments. For example, if your SSDI benefits begin in January 2016 (your “date of entitlement”), you will become eligible for Medicare in January 2018. A disabled person’s spouse and child dependents are also eligible to receive family benefits.
SSI is a need-based financial program based on income and assets. People who have never worked or who do not have enough recent work credits to qualify for SSDI may be eligible for SSI. To meet the SSI income requirements, an individual must have $2,000 or less in assets and a couple must have $3,000 or less in assets, and a limited income. SSI does not have an age limit, and disabled children can receive SSI benefits if their family meets the eligibility requirements.
If a person is found disabled under the SSI program, state-sponsored Medicaid health insurance will start immediately. SSI benefits are capped—and in 2016, the most an individual can receive per month is $733, but an individual might receive less depending on their financial need and where they live.
| Inquiry | SSDI | SSI |
| Are there limits on assets/resources? | No | Yes |
| Are there age restrictions? | Yes | No |
| What is the monthly benefit in 2016? | Average $1,166 | Capped at $733 |
| Is there a waiting period to receive benefits? | Yes (5 months) | No |
| Provides health insurance? | Yes, Medicare (after 24 months) | Yes, Medicaid (no waiting period) |
| Is there a family benefit? | Yes | No |
| Can you get back pay? | Yes | No |
| How do you apply? | Online, over the phone or in person with SSA | Over the phone or in person with SSA |
A person can receive both SSDI and SSI as long as he or she meets both sets of the eligibility requirements. However, in most cases Social Security only pays the SSDI benefit (the higher-paying program), because this often increases an individual’s income over the SSI limit in assets. Still, applying for both SSDI and SSI can be very beneficial. If you are found disabled and eligible under both programs you could start receiving SSI benefits immediately while you wait for the five-month waiting period to run for your SSDI benefits. Once the waiting period is over and you start receiving your SSDI benefits, usually the SSI benefits will stop because you are receiving a higher benefit amount from SSDI.
Our Disability team would be glad to screen you for benefit-type eligibility to help you take the first step towards applying.
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