Breaking Down The Differences Between SSI And SSDI
Last updated on May 19, 2025
Many people confuse Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) because both programs offer financial support to Michigan residents with disabilities. However, they serve different purposes and have distinct eligibility requirements. SSDI is an insurance program for workers who have paid into Social Security, while SSI is a needs-based program for those with limited income and resources.
I am Robert D. Paulbeck, a disability attorney based in Trenton, and I help clients pursue both SSDI and SSI benefits. With over 30 years of experience as a lawyer, I understand the nuances of each program and the eligibility requirements specific to Michigan. My commitment to providing personal attention and honest advice has helped many families secure the financial resources they need to build successful lives. Whether you’re seeking guidance on SSDI or SSI, I am here to offer support and clarity.
Overview Of SSDI
SSDI is designed for individuals who cannot work due to a disability but have a work history and have paid into Social Security through payroll taxes. This program is funded by Social Security taxes, making it a form of insurance for workers who become disabled before retirement age.
Unlike SSI, SSDI benefits are not based on income or resources, but rather on your work history and the severity of your disability. To qualify, you must have accumulated enough work credits based on your age and work duration.
SSDI provides monthly payments to eligible individuals, and after two years of receiving benefits, you may be eligible for Medicare coverage.
Overview Of SSI
SSI is a needs-based program available to the disabled, elderly, and blind. One key difference between SSI and SSDI is that SSI does not require Social Security work credits. Instead, it focuses on the applicant’s financial situation and medical condition.
SSI benefits are funded through general taxes rather than Social Security taxes, which fund SSDI. To qualify, individuals must meet strict income limits and asset restrictions. SSI provides monthly payments to help cover basic needs such as food, clothing and shelter. Additionally, most SSI recipients immediately have Medicaid eligibility, which can assist with medical expenses. SSI benefits are also a valuable lifeline for children with disabilities whose families lack sufficient income and resources.
Differences In Payments And Benefits
When it comes to benefit amounts, SSDI and SSI differ significantly. SSDI payments are determined based on your lifetime average earnings covered by Social Security. This means that the more you have paid into Social Security during your working years, the higher your monthly SSDI benefits will be.
On the other hand, SSI payments are standardized and are not influenced by your work history. Instead, SSI provides a base federal payment amount, which may be supplemented by additional state benefits, such as those offered in Michigan. These state supplements can help increase the total monthly payment for SSI recipients, providing further assistance for their basic needs.
Impact Of Employment On Benefits
Returning to work can have different impacts on your benefits under SSDI and SSI. For those receiving SSDI, the program offers a trial work period. During this period, you can test your ability to work without losing your benefits. This allows you to earn income while assessing whether you can maintain employment despite your disability. After the trial period, certain earnings limits apply, and exceeding these may affect your SSDI benefits.
In contrast, SSI has strict income limits. Any additional income, including earnings from work, can reduce your SSI benefits. The Social Security Administration calculates your countable income to determine the impact on your SSI payments. Understanding these rules is important to ensure that returning to work does not inadvertently affect your financial support.
Common Misconceptions About SSD And SSI
There are several misconceptions about SSDI and SSI that can lead to confusion. One common misunderstanding is that you cannot receive both SSDI and SSI simultaneously. However, in certain situations, individuals may qualify for concurrent benefits. This occurs when a person is eligible for SSDI based on their work history, but their SSDI payment is lower than the SSI federal benefit rate. In such cases, SSI can supplement the SSDI payment to bring it up to the SSI benefit level.
Another misconception is that SSDI and SSI have the same eligibility criteria. While both programs provide support for people with disabilities, they have distinct requirements. SSDI is based on work history, while SSI focuses on financial need.
Some people also mistakenly believe that receiving SSDI or SSI automatically disqualifies them from other forms of assistance. In reality, beneficiaries can often access additional support programs, such as food assistance or housing aid, without affecting their disability benefits. It’s important to explore all available resources to maximize the support you receive.
Contact Me For Further Guidance
If you need assistance understanding the differences between SSDI and SSI, or if you’re considering applying for disability benefits, I encourage you to contact my firm, Robert D. Paulbeck, Attorney at Law. I am dedicated to helping clients throughout the Detroit area, Trenton, Woodhaven and across Michigan sort out the complexities of Social Security benefits. Call 734-800-2699 to discuss how we can work together to secure the benefits you deserve.