SSI vs SSDI: Understanding the Two Most Important Disability Benefit Programs

By: Connor W Kavanaugh CTFA, ChSNC

Updated December 4th, 2025

Families navigating disability benefits often come across two major programs administered by the Social Security Administration: Supplemental Security Income and Social Security Disability Insurance. Although they sound similar, these programs work very differently and serve different purposes. Understanding the distinction is essential for building an effective long-term plan.

Let’s break them down.

What Is SSI?

Supplemental Security Income provides a monthly cash benefit to individuals with qualifying disabilities who have very limited income and resources. SSI is a needs-based program funded by general federal tax revenues rather than Social Security payroll taxes.

For 2025, the maximum federal SSI payment is approximately nine hundred fifty-nine dollars per month for an individual, although the actual payment varies depending on income and living situation. To remain eligible, a person must have less than two thousand dollars in countable assets and meet strict income limits.

SSI matters because it also opens the door to Medicaid in most states, which provides critical long-term services and supports.

What Is SSDI?

Social Security Disability Insurance is an earned-benefit program. To qualify, a person must have a disability and must have worked long enough and recently enough to earn sufficient work credits.

SSDI also covers individuals with disabilities whose parent is retired, disabled, or deceased. When the disability began before age twenty-two, the individual may qualify for SSDI based on the parent’s work history. This is commonly referred to as Disabled Adult Child (DAC) benefits.

Key characteristics of SSDI:

• There is no asset limit. A person may have well over two thousand dollars in assets and still qualify.

• Monthly benefit amounts vary widely based on a worker’s earnings history.

• A disabled adult child typically receives fifty percent of a parent’s full benefit while the parent is alive, and up to seventy-five percent if the parent is deceased.

• Medicare begins automatically after twenty-four months of SSDI entitlement.

How SSI and SSDI Differ

Although both programs use the same definition of disability, everything else about the programs is fundamentally different.

SSI eligibility is based on financial need.

• Limited income

• Less than two thousand dollars in countable assets

• No work history required

• Typically paired with Medicaid

SSDI eligibility is based on work credits.

• Earned through the individual’s or their parent’s work history

• No resource limit

• Provides access to Medicare after a waiting period

• Not tied to financial need

Many people qualify for both programs, especially individuals with disabilities who have limited income but enough work history to meet SSDI requirements. In those situations, SSDI is paid first, and SSI may supplement it in smaller amounts.

Can Someone Receive Both SSI and SSDI?

Yes. This is known as concurrent eligibility. If a person qualifies for SSDI but the SSDI amount is low, SSI may provide an additional monthly payment—so long as the individual meets the SSI resource and income rules.

Families often overlook the planning opportunities here. For example, maintaining SSI—even at one dollar—can preserve Medicaid eligibility, which is often more valuable than the cash benefit itself.

How do I apply for SSI or SSDI?

You can apply for SSI online only if you are an adult with a disability. SSI applications are not available online for people applying for a child under age 18 with a disability or a non-disabled senior aged 65+. These individuals must visit their local Social Security office or call 1-800-772-1213 (TTY 1-800-325-0778) between 7 a.m. – 7 p.m., Monday through Friday.

You can apply for SSDI benefits online at any age. You also can apply by calling Social Security at the number above or at your local office.

Because these programs interact with Medicaid, Medicare, special needs trusts, and long-term planning, many families find it helpful to work with a professional who understands both the technical rules and the broader planning picture.