Mike Murburg Defines SSI and SSDI

What is the Difference between SSI and Social Security Disability?

The main difference between Social Security Disability (SSD, or SSDI) and Supplemental Security Income (SSI) is the fact that SSD is available to workers who have accumulated a sufficient number of work credits, while SSI disability benefits are available to low-income individuals who have either never worked or who haven’t earned enough work credits to qualify for SSD.

While many people don’t distinguish between SSI (Supplemental Security Income) and SSDI (Social Security Disability Insurance), they are two completely different governmental programs. While both programs are overseen and managed by the Social Security Administration, and medical eligibility is determined in the same manner for both programs, there are distinct differences between the two.

SSI Defined

Supplemental Security Income is a program that is strictly need-based, according to income and assets, and is funded by general fund taxes. SSI is called a “means-tested program,” meaning it has nothing to do with work history, but strictly with financial need. To meet the income requirements you must have less than $2,000 in assets (or $3,000 for a couple) and a very limited income.

Disabled people who are eligible under the income requirements for SSI are also able to receive Medicaid in the state they reside in. Most people who qualify for SSI will also qualify for food stamps, and the amount an eligible person will receive is dependent on where they live and the amount of regular, monthly income they have. SSI benefits will begin on the first of the month when you first submit your application.

SSDI Defined

Social Security Disability Insurance is funded through payroll taxes. SSDI recipients are considered “insured” because they have worked for a certain number of years and have made contributions to the Social Security trust fund in the form of FICA Social Security taxes. SSDI candidates must be younger than 65 and have earned a certain number of “work credits.” After receiving SSDI for two years, a disabled person will become eligible for Medicare.

For further discussion, please review the attached video, where Mike Murburg discusses the differences between SSI and SSDI.