SSDI (Social Security Disability Insurance) and SSI (Supplemental Security Income) are both Social Security Administration (SSA) programs providing financial support for disabled individuals, but they differ significantly in their eligibility requirements and funding sources. SSDI is based on work history and contributions to the Social Security system through payroll taxes, while SSI is a needs-based program for those with limited income and resources, regardless of work history.
Here's a more detailed breakdown:
SSDI (Social Security Disability Insurance):
Eligibility: Based on work history and contributions to the Social Security system through payroll taxes.
Funding: Financed through Social Security taxes paid by workers and employers.
Work Credits: Requires a certain number of work credits, usually 40, with 20 earned in the last 10 years.
Benefits: Pays benefits to the disabled individual and potentially certain family members.
Benefit Amount: Calculated based on the individual's average lifetime earnings.
SSI (Supplemental Security Income):
Eligibility: Based on financial need, with limited income and resources.
Funding: Financed by general tax revenues.
Work History: No work history required.
Benefits: Provides a monthly income to cover basic needs like food, clothing, and housing for those who qualify.
Benefit Amount: A standard monthly amount, with potential supplements from states.
Resource Limits: Strict limits on assets and income.
Key Differences Summarized:
Work History: SSDI requires a work history, SSI does not.
Funding Source: SSDI is funded by Social Security taxes, SSI by general tax revenues.
Eligibility: SSDI eligibility is tied to work credits, SSI is based on financial need.
Benefits: SSDI pays benefits based on earnings, SSI provides a standard amount based on need.
State Supplements: Some states offer additional payments to SSI recipients but not to SSDI recipients.
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