Key Differences Between SSDI and SSI

Eligibility Requirements

• SSDI is based on your work history and the amount you've paid into Social Security through payroll taxes. You must have earned enough work credits to qualify.
• SSI is based on financial need. It does not require work history but instead looks at your income and asset limits.

Funding Sources

• SSDI is funded through Social Security taxes paid by workers, employers, and the self-employed.
• SSI is funded by general tax revenues, not Social Security taxes.

Benefit Amounts

• SSDI benefit amounts depend on your earnings record—the more you paid into Social Security, the higher your monthly benefit.
• SSI benefits are generally lower and are set by the federal government, though some states add a supplemental amount.

Health Insurance

• SSDI recipients become eligible for Medicare after a 24-month waiting period.
• SSI recipients usually qualify for Medicaid right away, depending on the state.

Application Process

The application process is similar, but eligibility rules differ:

• SSDI requires proof of disability and work history.
• SSI requires proof of disability and financial need (low income and limited assets).

Work Incentives and Limits

• SSDI allows trial work periods where you can test working without losing benefits.
• SSI has strict income limits—any earnings may reduce your benefit or disqualify you altogether.

Which Program Should You Apply For?

• If you’ve worked and paid into Social Security for several years, SSDI may be your best fit.
• If you haven’t worked enough or have limited income/resources, SSI may be the better option.
• Some individuals qualify for both SSDI and SSI—this is called concurrent benefits.