When navigating disability benefits in the United States, it’s crucial to understand the differences between Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). Both programs aim to provide financial support to individuals with disabilities, but they operate under different criteria and offer varying benefits. Here’s a detailed look at the key distinctions between SSI and SSDI in 2024.
Eligibility Requirements
SSDI Eligibility
SSDI is available to individuals who have worked and paid Social Security taxes, thus earning work credits. If you have a substantial work history and have contributed to Social Security through your taxes, you may qualify for SSDI benefits.
SSI Eligibility
In contrast, SSI provides additional financial assistance to low-income retirees and disabled individuals who may not have a sufficient work history to qualify for SSDI, as long as they meet the income and asset criteria. SSI is needs-based and does not require a work history.
Payment Amounts
SSDI Payments
The amount of money recipients can get from SSDI is typically higher and reflects the beneficiary’s past earnings. For example, the average SSDI payment in 2024 is around $1,537, with a maximum potential benefit of $3,822 per month.
SSI Payments
On the other hand, SSI payments are more modest. As of June 2024, the maximum SSI payment is $943 for single individuals and $1,415 for married couples, with the average payment being about $697.
Calculation of Benefits
SSDI Calculation
SSDI benefits are calculated based on your average lifetime earnings prior to becoming disabled. Here are the key steps in the calculation:
- Average Indexed Monthly Earnings (AIME): This figure is calculated using up to 35 of your highest earning years, adjusted for wage growth over time.
- Primary Insurance Amount (PIA): The PIA is determined by applying fixed percentages to portions of your AIME. In 2024, the formula is:
- 90% of the first $1,174 of your AIME
- 32% of your AIME between $1,175 and $7,078
- 15% of any AIME above $7,078
If approved, you receive 100% of your PIA as your monthly SSDI payment, irrespective of your age.
SSI Calculation
SSI is a needs-based program, with benefits determined by the Federal Benefit Rate (FBR) minus any countable income. In 2024, the FBR for an individual is $783 per month. Both SSI and SSDI benefits are subject to annual increases based on the Cost-of-Living Adjustment (COLA) tied to the Consumer Price Index.
Other Key Differences
Eligibility
SSDI is exclusively for workers who cannot work for over a year due to disability and who have paid enough payroll taxes to the SSA. Conversely, SSI can be for people with low income regardless of their disability status. To qualify for SSI, you must either have a disability, be blind, or be at least 65 years old.
Funding Sources
The funding for SSI comes from general tax revenues of the Federal government. In contrast, SSDI is funded through payroll taxes collected from workers and their employers under the Federal Insurance Contributions Act (FICA).
Impact of Other Benefits
While both programs can be affected by other benefits, SSDI may be reduced if the recipient receives certain other disability-related benefits.
Understanding the distinctions between SSI and SSDI is essential for determining which program might be right for you or your loved ones. While SSDI is designed for those with a substantial work history who have paid into the Social Security system,
SSI provides a safety net for low-income individuals regardless of their work history. Both programs are critical for supporting individuals with disabilities, but their eligibility requirements, benefit amounts, and funding sources differ significantly.
Both SSI and SSDI provide essential support to individuals with disabilities. Understanding the differences in eligibility, payment amounts, and funding sources can help you determine which program is right for you or your loved one.
Whether you qualify for SSDI due to a robust work history or need SSI due to limited income, these programs are designed to offer financial assistance and improve quality of life.
What is the main difference between SSI and SSDI?
SSI is needs-based and does not require a work history, while SSDI is based on work credits earned through paying Social Security taxes.
How are SSI and SSDI payments calculated?
SSDI payments are based on your average lifetime earnings, while SSI payments are determined by the Federal Benefit Rate minus any countable income.
Who is eligible for SSI benefits?
Individuals with low income, those who are blind, disabled, or aged 65 and older may qualify for SSI benefits.
Can I receive both SSI and SSDI benefits?
Yes, some individuals may qualify for both SSI and SSDI benefits, depending on their income and work history.
What is the average SSDI payment in 2024?
The average SSDI payment in 2024 is around $1,537 per month, with a maximum potential benefit of $3,822 per month.