Understanding how Social Security benefits work can be challenging, especially when looking at the differences between Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Both programs offer financial support to people with disabilities, but each has distinct eligibility requirements, benefits and application processes.
SSDI is calculated by average earnings
Social Security Disability Insurance (SSDI) is an insurance program that provides benefits to individuals who have a disability and have earned enough work credits through their employment. Work credits are accumulated based on the income earned and the Social Security taxes paid. Generally, an individual must have worked for about ten years to qualify for SSDI, although younger workers may qualify with fewer credits.
SSDI benefits are calculated based on the individual’s average lifetime earnings before their disability began. Unlike SSI, SSDI is not means-tested, meaning there are no income or resource limits for eligibility. However, SSDI recipients must wait five months after their disability onset before they can begin receiving benefits. After receiving SSDI benefits for 24 months, recipients are eligible for Medicare.
SSI is needs-based
Supplemental Security Income (SSI) is needs-based and designed to help individuals with limited income and resources. SSI benefits are available to people 65 or older, disabled or blind, regardless of their work history. The primary goal of SSI is to provide financial assistance to cover basic needs such as food, clothing and shelter.
Eligibility for SSI is determined based on financial need. To qualify, an individual must have limited income and resources. As of 2023, the resource limits are $2,000 for individuals and $3,000 for couples. SSI recipients also automatically qualify for Medicaid in most states, which helps cover medical expenses.
Not sure where to start?
Understanding the differences between SSDI and SSI is vital for individuals seeking disability benefits. Both programs aim to support individuals with disabilities but serve different populations and have distinct eligibility criteria and benefits.
If you believe you qualify for either SSI or SSDI, it’s important to consider consulting with a knowledgeable professional based here in West Virginia to guide you through the application process. They can help ensure you receive the benefits you are entitled to and support your financial and healthcare needs.