When navigating disability benefits in the United States, it’s crucial to understand the differences between Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI).
Both programs aim to provide financial support to individuals with disabilities, but they operate under different criteria and offer varying benefits. Here’s a detailed look at the key distinctions between SSI and SSDI in 2024.
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Difference Between SSI and SSDI Benefits in 2024
The primary difference between SSI and SSDI lies in their eligibility requirements. SSDI is available to individuals who have worked and paid Social Security taxes, thus earning work credits.
In contrast, SSI provides additional financial assistance to low-income retirees and disabled individuals who may not have a sufficient work history to qualify for SSDI, as long as they meet the income and asset criteria.
Payment Amounts
The amount of money recipients can get from SSI and SSDI also varies significantly. SSDI payments are typically higher, reflecting the beneficiary’s past earnings. For example, the average SSDI payment in 2024 is around $1,537, with a maximum potential benefit of $3,822 per month.
On the other hand, SSI payments are more modest. As of June 2024, the maximum SSI payment is $943 for single individuals and $1,415 for married couples, with the average payment being about $697.
Calculation
SSDI Calculation
SSDI benefits are calculated based on your average lifetime earnings prior to becoming disabled. Here are the key steps in the calculation:
- Average Indexed Monthly Earnings (AIME): This figure is calculated using up to 35 of your highest earning years, adjusted for wage growth over time.
- Primary Insurance Amount (PIA): The PIA is determined by applying fixed percentages to portions 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, irrespective of your age.
SSI Calculation
SSI is a needs-based program, with benefits determined by the Federal Benefit Rate (FBR) minus any countable income. In 2024, the FBR for an individual is $783 per month. Both SSI and SSDI benefits are subject to annual increases based on the Cost-of-Living Adjustment (COLA) tied to the Consumer Price Index.
Other Differences
Eligibility
SSDI is exclusively for workers who cannot work for over a year due to disability and who have paid enough payroll taxes to the SSA. Conversely, SSI can be for people with low income regardless of their disability status. To qualify for SSI, you must either have a disability, be blind, or be at least 65 years old.
Funding Sources
The funding for SSI comes from general tax revenues of the Federal government. In contrast, SSDI is funded through payroll taxes collected from workers and their employers under the Federal Insurance Contributions Act (FICA).
Impact of Other Benefits
While both programs can be affected by other benefits, SSDI may be reduced if the recipient receives certain other disability-related benefits.
Understanding the distinctions between SSI and SSDI is essential for determining which program might be right for you or your loved ones. While SSDI is designed for those with a substantial work history who have paid into the Social Security system, SSI provides a safety net for low-income individuals regardless of their work history.
Both programs are critical for supporting individuals with disabilities, but their eligibility requirements, benefit amounts, and funding sources differ significantly.
FAQs
Who qualifies for SSDI?
Individuals who have a disability, cannot work for over a year, and have earned enough work credits by paying Social Security taxes.
What is the maximum SSI payment in 2024?
$943 for singles and $1,415 for married couples.
How is SSDI calculated?
Based on average lifetime earnings before disability, adjusted by a formula.
Can you receive both SSI and SSDI?
Yes, in some cases, individuals can qualify for both, known as concurrent benefits.
Does SSI have income limits?
Yes, SSI is needs-based, so income and assets must be below certain thresholds.
