SSDI vs. SSI
SSDI vs. SSI: What You Need to Know
Ever wondered about Social Security benefits but got lost in the jargon or acronyms? Let’s
clear up the confusion between SSDI (Social Security Disability Insurance) and SSI
(Supplemental Security Income). They might sound similar, and they both require proof of
a disabling medical condition, but they’re like two sides of the same coin.
1. Who’s in?
SSDI: If you’ve been punching the clock and paying those Social Security taxes, SSDI is
for you. It looks at your work history and needs you to have enough credits.
SSI: Didn’t do the 9-to-5 or your disability occurred early in life? SSI is here for those with
low income and disabilities. It doesn’t care about your work history; it checks your income,
assets/resources, and where you live.
2. Cash Flow:
SSDI: Your paycheck in the past decides your monthly disability benefit. The more you
earned, the more you get.
SSI: It’s like a fixed allowance- not big, just enough to cover basics. This amount can
change based on where you live and other money coming in.
3. Healthcare Perks:
SSDI: Say hello to Medicare! It kicks in for SSDI folks, covering those medical bills and
keeping you healthy.
SSI: Medicaid is the health buddy for SSI. It helps out with medical costs, making sure
you’re covered even if you have limited resources.
4. Funding Source:
SSDI: You funded this benefit yourself through payroll taxes. It’s the same money that you
would receive at retirement age.
SSI: Uncle Sam’s got your back here. SSI is funded by tax dollars, not what you paid into
Social Security through working.
So SSDI and SSI might share some initials, but they’re pretty different. If you’re diving into
the Social Security benefits pool, remember this: SSDI is for the workers with credits, and
SSI is more about needs and low income. It’s possible to be eligible for both benefits, just
one of them, or neither, depending on your situation.
Not sure what applies to you or your loved ones? We are always here to guide you.
Sarah and Chuck