What Is the Difference Between Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI)?

Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are both federal programs that provide financial assistance to individuals with disabilities, but they have important differences in terms of eligibility, funding, and benefits.

SSDI is an insurance program for individuals who have worked and paid into the Social Security system through payroll taxes. To qualify for SSDI, applicants must have a sufficient work history, typically requiring at least 40 work credits, with 20 of those credits earned in the past 10 years. The amount of SSDI benefits depends on the applicant’s past earnings, with higher earners generally receiving higher benefits. SSDI is designed for individuals who have developed a disability that prevents them from working, and it is not based on financial need.

On the other hand, SSI is a needs-based program for individuals who are disabled, blind, or aged 65 and older, and who have limited income and resources. SSI does not require a work history, making it accessible to people who may not have worked or paid into Social Security, such as children with disabilities or elderly individuals. The benefits are generally lower than SSDI and are based on the applicant’s financial need, rather than their previous earnings.

In summary, SSDI is for individuals who have worked and paid Social Security taxes, while SSI is for individuals with disabilities who have limited income and resources, regardless of their work history. Both programs aim to provide financial support, but they serve different populations and have different eligibility criteria.