The difference between SSI and SSDI disability benefits
The main difference between SSI and SSDI is that you must work and earn work credits to receive Social Security Disability Insurance, so you are only eligible for these disability benefits if you have paid taxes into Social Security.
SSI is Supplemental Security Income, which provides additional financial assistance to low-income retirees and disability recipients. Of course, SSI can also be a source of income for people who are low-income and don’t qualify for Social Security benefits, as long as they meet all of the eligibility criteria.
How much can SSI and SSDI disability benefit recipients receive?
This is another important difference between SSI and SSDI: Social Security Disability Insurance benefit payments can be much higher than Supplemental Security Income payments.
For example, if you qualify for the average SSDI payment, you can receive approximately $1,537. For the maximum of these disability benefits, recipients can receive up to $3,822.
Meanwhile, SSI recipients can receive up to $943 if they are single and $1,415 if they are married. As of June 2024, the average SSI payment is about $697.
How are SSI and SSDI disability benefits calculated?
SSDI benefits are calculated based on your lifetime average earnings, which is your earnings before your disability began. They are not based on the severity of your disability or your household income. Important points about the SSDI calculation:
SSA uses your highest earning years up to 35 to calculate your Average Indexed Monthly Earnings (AIME). This is adjusted for wage growth over time. The number of years used depends on your age when you became disabled. Your Basic Insurance Amount (PIA) is the base amount of your benefit. It is calculated by applying a fixed percentage to each portion of your AIME. For 2024, the formula is: 90% of the first $1,174 of your AIME, 32% of your AIME from $1,175 to $7,078, and 15% of your AIME above $7,078. If approved, you can receive 100% of your PIA as your monthly SSDI payment, regardless of your age. For 2024, your average SSDI benefit is $1,537.
In contrast, Supplemental Security Income (SSI) is a need-based program: benefits are calculated based on the federal benefit rate ($783 per month per individual in 2020), minus any countable income.
Your SSI and SSDI benefits may increase each year through a cost-of-living adjustment (COLA) based on the Consumer Price Index. Your SSDI benefits may be reduced if you receive other disability-related benefits.
The nature and severity of your disability is not taken into account in calculating SSDI or SSI.
Further differences between SSI and SSDI disability benefits
SSDI is only available to workers who have been unable to work for more than a year, are disabled, and have paid sufficient payroll taxes to the SSA. SSI is available to people who are not disabled.
Just to let you know, there are three ways that a low-income person can qualify for SSI: either they are disabled or blind, whether they are an adult or a child, or they are over 65 years old.
The final important difference is the fact that SSI is funded by the federal government, whereas SSDI disability benefits are funded by workers who pay taxes to the SSA.