Understanding the Difference Between SSDI and SSI Benefits

The process of applying for Social Security benefits can be challenging, especially when it comes to determining which type of benefits are right for you. 

Many individuals are unfamiliar with the distinctions between Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). 

Both of these programs provide financial support to individuals with disabilities, but they have different eligibility requirements, benefit amounts, and funding sources. Understanding these differences is essential to help you determine which program may be right for your situation. 

Read on to learn more about the key differences between SSDI and SSI benefits under Washington law, along with how our SSDI benefits attorney can help.

What Is SSDI?

SSDI, or Social Security Disability Insurance, is a program that provides benefits to individuals who are unable to work due to a disability. Unlike SSI, which is based on financial need, SSDI is a program that’s primarily based on your work history and the number of Social Security credits you have earned over the years. 

To qualify for SSDI benefits, you must have worked for a certain number of years and paid Social Security taxes on your income. The number of credits required depends on your age at the time your disability occurs.

In Washington, as well as in other states, SSDI is designed for individuals who have worked and contributed to the Social Security system over a period of time but are now unable to maintain substantial gainful employment due to a disability. 

SSDI provides monthly payments to eligible individuals who meet the Social Security Administration’s (SSA) criteria for disability. These payments are typically higher than SSI payments because SSDI benefits are based on your earnings history.

To qualify for SSDI, an individual must meet the SSA’s definition of disability, which includes having a medical condition that’s severe enough to prevent them from working for at least 12 months or result in death. 

This condition must be verifiable through medical records, so it’s important to have sufficient documentation from healthcare providers.

What Is SSI?

Supplemental Security Income, or SSI, is another federal program that provides financial assistance to individuals with disabilities, but it differs from SSDI in several key ways. 

SSI is a needs-based program, meaning eligibility is determined by your income and resources, rather than your work history. SSI is designed for individuals who have limited financial resources and who may not have worked enough to qualify for SSDI.

In Washington, SSI benefits are available to low-income individuals who are either aged 65 or older, blind, or disabled. To qualify for SSI, applicants must meet both the medical and financial eligibility requirements. 

The financial requirements include income limits, which include both earned income (such as wages from employment) and unearned income (such as Social Security benefits, pensions, or government assistance). 

Additionally, SSI has limits on the amount of assets or resources an individual can have. These limits are set by the SSA, and individuals who exceed these asset limits may not be eligible for SSI benefits.

Unlike SSDI, which requires applicants to have a certain number of work credits, SSI doesn’t have such a requirement. This makes SSI an option for individuals who haven’t worked long enough to qualify for SSDI but are still unable to work due to a disability.

Key Differences Between SSDI and SSI Benefits

While both SSDI and SSI provide financial assistance to individuals with disabilities, they differ in several important areas, including eligibility criteria, benefit amounts, and funding sources.

Eligibility requirements

The most significant difference between SSDI and SSI lies in their eligibility requirements. SSDI requires a certain number of work credits, which are earned through working and paying Social Security taxes. 

• The number of credits required depends on your age, but generally, you need at least 40 work credits, 20 of which must have been earned in the last 10 years. This makes SSDI available to individuals who have a sufficient work history. 

• In contrast, SSI is a needs-based program and doesn’t require work credits. Instead, SSI is available to individuals who meet the SSA’s medical and financial eligibility requirements, which include income and asset limits.

Benefit amounts

The amount of benefits you receive from SSDI is based on your past earnings. SSDI payments are typically higher than SSI payments because they’re tied to how much you have earned over your working years. 

3. The SSA calculates your SSDI benefit based on your average lifetime earnings, with a formula that factors in your highest earning years. In contrast, SSI benefits are set at a standard amount, which is determined by the federal government. 

4. In Washington, as in other states, the monthly SSI benefit is usually lower than the SSDI benefit, as it’s designed to provide only basic financial support to individuals with limited income and resources.

Work history

As mentioned earlier, SSDI is primarily based on your work history. To qualify for SSDI, you need to have worked for a certain number of years and earned enough credits. 

• This means that SSDI benefits are generally available to individuals who have worked and contributed to the Social Security system throughout their careers. 

• On the other hand, SSI is available to individuals who may not have had the opportunity to work enough to qualify for SSDI or who may have limited work history due to age, disability, or other factors. SSI is often used by individuals who haven’t been able to work or who have worked for a limited period.

Income and resources

SSI benefits are based on financial need, so your income and resources are closely scrutinized when you apply for benefits. To qualify for SSI, you must have limited income and resources. 

• The SSA sets strict limits on the amount of income and assets you can have to qualify for SSI. SSDI, on the other hand, isn’t affected by your current income or assets, as long as you meet the SSA’s disability criteria and have earned enough work credits. 

• SSDI is a form of insurance, not a needs-based program, so the financial criteria for SSDI are less restrictive than those for SSI.

Eligibility for other benefits

While SSDI and SSI are separate programs, individuals who qualify for SSDI may also be eligible for additional benefits such as Medicare. SSDI recipients typically become eligible for Medicare coverage after a 24-month waiting period. 

• SSI recipients, however, may qualify for Medicaid, which provides health coverage for individuals with low income and resources. It’s important to understand these differences when applying for either SSDI or SSI, as the availability of healthcare benefits can play a significant role in your decision.

How SSDI and SSI Work Together

In some cases, individuals may be eligible for both SSDI and SSI benefits. This can happen if an individual qualifies for SSDI based on their work history but their monthly SSDI benefits are below a certain threshold. In this situation, the individual may also be eligible for SSI benefits to supplement their SSDI payments. 

This is known as "concurrent benefits." The amount of SSI you receive in this situation is typically reduced by the amount of your SSDI payment, but it can help provide additional financial support if your SSDI benefits aren’t enough to cover your living expenses.

The Next Steps

At Armstrong Law Offices, P.S., we’re dedicated to helping our clients understand these programs and guiding them through the process of applying for benefits. We’re proud to serve clients throughout Kent, Seattle, Tacoma, and Renton. Call today to speak with our experienced Social Security attorney.