What's the Difference Between SSDI and SSI?

Though they may sound similar, Social Security Disability (SSDI, or just SSD) and Supplemental Security Income (SSI) are two very different programs. Both are federal programs managed by the Social Security Administration, and both provide cash payments for people who qualify as disabled, but that’s about the limit to their similarities. Here’s an overview of the two programs and a review of their differences.

The Social Security program arose out of the severe poverty conditions in the 1930s created by the Great Depression, particularly the struggle of senior citizens to support themselves during this time. The Social Security Act was drafted in 1935 by a special committee working under President Franklin D. Roosevelt as an important part of the New Deal.

Technically speaking, SSDI is an entitlement program that pays out from a disability trust fund. As a person works over the course of their productive years, they pay into this trust fund through FICA taxes and earn work credits. Once they reach retirement age, and presuming they have a qualifying disability and the requisite number of work credits, usually 20, they can begin drawing money from the program.

In contrast to SSDI, SSI is a means-tested welfare program that pays out from general tax revenues. If someone lacks the work history to have contributed toward SSDI, and they have a qualifying disability and limited income, they can get monthly payments from SSI. In addition to monthly payments, someone receiving SSI usually qualifies for receiving Medicaid benefits as well.

Unlike SSDI, which is a federally-supported program, SSI is jointly funded between federal and state governments. That means that some states may contribute additional funds.

To qualify for either SSDI and SSI, a candidate must meet the Social Security Administration’s criteria for disability. Social Security maintains a book called the Listing of Impairments that describes the various conditions, and their respective levels of severity, that will guarantee approval. The conditions range widely, from autism and asthma to lung cancer and HIV, with separate categories for adults and children.

However, the level of severity required for qualifying according to the Listing of Impairments is quite high, and most recipients qualify through another method that involves proving that they’re unable to perform substantial gainful activity (SGA). Social Security evaluates your ability to perform SGA by looking at your past ability to work in previous jobs, as well as factors such as age, skills and education.

Note that it’s possible for a person to qualify for both SSDI and SSI and to draw benefits from them concurrently.

The monthly payments vary widely between SSDI and SSI. The benefits amount for SSDI depends on the work history of the individual, while SSI benefits are calculated according to the Federal Benefit Rate (FBR). The FBR for 2018 is $750 for an individual and $1,125 for a couple, and this amount is reduced by the amount of countable income. Finally, the state supplement is added, if any.

According to a FAQ on what's the difference between SSI and SSD, it all boils down to “the technical qualifications,” and not the fact that someone is disabled and in need of benefits from Social Security.