Learn About SSI and SSDI Programs

Understanding SSI and SSDI: What These Programs Are

Social Security Insurance (SSI) and Social Security Disability Insurance (SSDI) are two separate federal programs that provide monthly payments to people who meet specific conditions. While both programs are managed by the Social Security Administration (SSA) and share similar names, they work differently and serve different groups of people.

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SSDI is an insurance program funded through payroll taxes. Workers and their employers contribute to Social Security throughout their working years. If a worker becomes unable to work due to a medical condition, or if a family member depends on that worker, SSDI may provide monthly payments. The program also covers children of workers who have retired, become disabled, or passed away. As of 2024, approximately 8.6 million people receive SSDI payments each month.

SSI, by contrast, is a needs-based program funded by general tax revenue. It provides payments to people with limited income and resources who are age 65 or older, blind, or disabled. SSI does not require a work history. The program focuses on helping people who have very little money. About 7.3 million people receive SSI payments monthly.

Both programs recognize disability as a significant barrier to work. The SSA defines disability as a medical condition that prevents a person from doing substantial work and is expected to last at least 12 months or result in death. This definition is stricter than many people expect. For example, someone with a painful back condition may still be considered able to perform some types of work, even if they cannot do their previous job.

Understanding the difference between these programs matters because the rules, payment amounts, and requirements vary considerably. Someone may not meet the requirements for SSDI but might qualify for SSI, or vice versa. Knowing which program applies to a person's situation helps them understand what options may be available.

Practical Takeaway: SSI is for people with low income and resources; SSDI is for workers (or their families) who have paid into Social Security. Both require meeting a strict disability definition, but they operate under different rules.

How SSDI Works: Work History and Family Benefits

SSDI operates like an insurance policy. Workers pay into the system during their working years, and if they become disabled, the insurance pays out. To have paid into the system long enough, a person generally needs to have worked and paid Social Security taxes for a certain number of years. The exact requirement depends on age. A worker who becomes disabled at age 24 needs fewer work credits than someone who becomes disabled at age 50, though someone disabled in their 50s typically needs about 20 work credits in the last 10 years.

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One credit is earned for roughly every $1,730 in earnings in 2024, up to four credits per year. This means a person earning around $7,000 per year could earn four credits. Someone working full-time at minimum wage would accumulate credits even while working part-time. Workers who have paid into Social Security long enough and meet the disability definition may receive monthly payments.

SSDI also provides payments to family members of disabled workers. If a worker receives SSDI, their spouse (age 62 or older, or any age if caring for a child under 16), unmarried children under 19 (or 22 if in school), and adult children disabled before age 22 may also receive payments based on that worker's earnings record. This extended family coverage explains why SSDI reaches more than 8 million people—many of these are family members rather than disabled workers themselves.

The payment amount for a disabled worker is based on their lifetime earnings history. Workers who earned more generally receive larger monthly payments. The average SSDI payment in 2024 is approximately $1,550 per month for a disabled worker. Family members typically receive between 50% and 75% of the worker's payment amount, though the total family payment is limited.

SSDI also includes the work incentive program, which allows beneficiaries to try working without immediately losing all benefits. For example, a beneficiary can earn up to $1,550 per month (in 2024) and still receive their full SSDI payment. This amount, called substantial gainful activity, is the threshold the SSA uses to determine if someone is working at a level that would prevent them from receiving benefits.

Practical Takeaway: SSDI requires a work history and payment into Social Security, but if approved, family members may also receive benefits, and work incentives allow beneficiaries to try working again.

How SSI Works: Income, Resources, and Living Arrangements

SSI is fundamentally different from SSDI because it is based on financial need, not work history. To receive SSI, a person must have income below a certain limit and resources (money, property, vehicles) below a set threshold. In 2024, the monthly payment for an individual is up to $943 if they have no other income. For a couple, the maximum is $1,415. These amounts are adjusted yearly for inflation.

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When calculating whether someone meets the income limit, the SSA counts most types of money coming in—wages from work, unemployment payments, pensions, and interest. However, the first $65 of monthly earnings plus half of earnings above that are not counted. This work incentive encourages people to try working. For example, someone earning $200 per month would have only $100 counted as income, allowing them to still receive a reduced SSI payment.

Resources include cash, bank accounts, stocks, and vehicles. The resource limit for SSI is $2,000 for an individual and $3,000 for a couple. Items like a home, one vehicle used for transportation, and household goods are not counted. Life insurance policies up to $1,500 in face value are also excluded. Someone with $2,500 in a savings account would have $500 in countable resources over the limit and would not receive SSI until that amount decreased.

Living arrangements affect SSI payments. If someone lives in another person's household and that person pays for food and shelter, SSI reduces the payment by about one-third. If someone lives in a medical facility and Medicaid pays more than half the cost, SSI payments are reduced to $30 per month. Understanding these rules is important because many people do not realize that moving in with family or entering a care facility may reduce their payments.

SSI also covers children. A child under 18 who is blind or disabled may receive SSI if the family's income and resources are low enough. The income and resource limits are the same, but the calculation includes parental income and resources. A child whose parents have higher income or resources may still receive SSI if the parents do not provide food and shelter.

Practical Takeaway: SSI payments depend on income and resources; work incentives reduce the pressure to stay unemployed, but living arrangements and family income affect payment amounts significantly.

The Disability Definition: What Does the SSA Consider Disability?

The SSA uses a specific definition of disability that differs from how many people use the word. To the SSA, disability means a medical condition that prevents a person from doing substantial work and is expected to last at least 12 months or result in death. This is a high bar. Someone with a painful knee may not meet this definition if they can still do desk work, even if they cannot return to their previous job as a construction worker.

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The SSA evaluates whether a person can do their past work, and if not, whether they can do other work that exists in the national economy. This means the agency looks at whether jobs are actually available, not just whether they theoretically exist. The SSA maintains a database of job titles and their physical and mental demands. A person who is nearsighted but can work as a phone customer service representative may not be considered disabled, even though they cannot work as a truck driver.

Medical evidence is the foundation of any disability evaluation. The SSA reviews statements from doctors, test results, therapy notes, and hospital records. A person applying for benefits should have medical documentation of their condition. Going to doctor appointments and following treatment recommendations strengthens a claim. Conversely, if someone has not sought medical treatment for a serious condition, the SSA may question how serious it really is.

The SSA maintains a list of medical conditions that automatically meet the disability definition if the person has that condition at a certain severity level. These are called "listings." Examples include severe forms of cancer, certain heart conditions, loss of limbs, and intellectual disability. If someone's condition