The main difference between SSI and SSDI is the fact that you must have worked and earned work credits to get Social Security Disability Insurance. Therefore, you can only qualify for these disability benefits if you have paid taxes to Social Security.
SSI is the Supplemental Security Income and it gives additional financial support to retirees and disability beneficiaries who have a low income. Of course, SSI can also be a source of income for those who have a low income and do not qualify for Social Security as long as they meet all the eligibility criteria.
How much money can recipients get from SSI and SSDI disability benefits?
This is another important difference between SSI and SSDI. Social Security Disability Insurance benefit payment amounts can be much higher than Supplemental Security Income payments.
For example, if you qualify for an average payment for SSDI, you can get about $1,537. When it comes to the maximum amount for these disability benefits, recipients can get up to $3,822.
On the other hand, SSI recipients can receive up to $943 if they are single or up to $1,415 if they are married. Average SSI payments are about $697 as of June 2024.
How is the amount of SSI and SSDI disability benefits calculated?
Your SSDI benefit amount is based on your average lifetime earnings. They are the earnings from before your disability began. It is not based on the severity of your disability or your household income. Key points about the SSDI calculation:
- The SSA calculates your Average Indexed Monthly Earnings (AIME) using up to 35 of your highest earning years. It adjusts them for wage growth over time. The number of years used depends on your age when you became disabled.
- Your Primary Insurance Amount (PIA) is the base amount of your benefit. It is calculated by applying fixed percentages to parts of your AIME. In 2024, the formula is:
- 90% of the first $1,174 of your AIME
- 32% of your AIME between $1,175 and $7,078
- 15% of any AIME above $7,078
- If approved, you receive 100% of your PIA as your monthly SSDI payment, regardless of your age. The average SSDI benefit in 2024 is $1,537.
In contrast, Supplemental Security Income (SSI) is a needs-based program. The benefit amount is based on the Federal Benefit Rate ($783/month for an individual in 2020), minus any countable income you have.
Both SSI and SSDI benefits may be increased each year with a Cost-of-Living Adjustment (COLA) based on the Consumer Price Index. Your SSDI may be reduced if you receive certain other disability-related benefits.
The nature and severity of your disability does not factor into the SSDI or SSI calculation
More differences between SSI & SSDI disability benefits
SSDI is just for those workers who cannot work for over a year, have a disability, and have paid enough payroll taxes to SSA. SSI can be for people who do not have a disability.
For your information, there are 3 ways to qualify for SSI if you have a low income. One of them is to have a disability or be blind, whether you are an adult or a child. The other one is to be at least 65 years old.
The last important difference is the fact that SSI gets funding from the Federal government. Nevertheless, SSDI disability benefits get funding from workers who pay taxes to SSA.