What Is the Difference Between SSDI and SSI Benefits?
Understanding Social Security benefits can feel overwhelming. For individuals facing disabilities and financial hardships, two federal programs—Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI)—can provide much-needed support. However, despite their similar goals, these programs differ in important ways.
At Spencer Law Group, we’re proud to assist clients throughout the Lexington, Kentucky area as they seek clarity and help with their Social Security claims. Let’s explore the differences between SSDI and SSI benefits and guide you on what each program might offer based on your unique circumstances.
The Basics of SSDI and SSI
Although both SSDI and SSI are federal programs administered by the Social Security Administration (SSA), they serve distinct purposes and are designed for different groups of people.
What Is SSDI?
Social Security Disability Insurance (SSDI) provides financial assistance to individuals who have worked and paid into the Social Security system through payroll taxes but are now unable to work due to a disability. SSDI is essentially an insurance program—your eligibility is based on your work history and how much you have contributed to the system.
What Is SSI?
Supplemental Security Income (SSI), on the other hand, is a needs-based program designed to help individuals who are disabled, blind, or elderly and have limited income and resources. SSI does not depend on your work history or contributions to the Social Security fund. Instead, it’s funded by general tax revenues and is strictly based on financial need.
While both programs assist disabled individuals, the path to eligibility, the benefits received, and the underlying funding mechanisms are quite different.
Key Differences Between SSDI and SSI
Understanding the differences between SSDI and SSI can help you or a loved one make informed decisions when applying for disability benefits. Below, the major distinctions between the two programs are broken down.
1. Eligibility Requirements
SSDI and SSI have different requirements for eligibility. It’s important to assess your own situation or that of a family member to determine which program you may qualify for. To qualify for SSDI:
You must have a disability that meets the SSA’s definition of disability.
You must have earned enough work credits through past employment, typically through Social Security payroll taxes.
You must be unable to perform substantial gainful activity (SGA) due to your disability.
While similar, qualifying for SSI is slightly different. To qualify for SSI:
You must be age 65 or older, blind, or disabled according to the SSA’s definition.
You must have limited income and limited resources.
You do not need to have a work history or prior contributions to Social Security.
These different eligibility standards mean that some applicants may qualify for both SSDI and SSI, while others may only qualify for one.
2. Work History and Credits
One of the key differences between SSDI and SSI lies in the importance of your employment record. Before receiving SSDI:
You must accumulate enough “work credits.” Generally, you need 40 work credits, with 20 of those earned in the last 10 years prior to becoming disabled.
Younger workers may need fewer credits to qualify depending on their age.
For SSI:
Work credits do not matter. Instead, eligibility is strictly income- and resource-based.
This means that SSDI is more suitable for individuals who have worked for a significant period and contributed to Social Security through their jobs.
3. Income and Resource Limits
Income and asset levels play vastly different roles in SSDI and SSI.
For SSDI:
There is no income limit, but the income must not exceed what the SSA defines as substantial gainful activity (SGA), which in 2025 is $1,550 per month for non-blind individuals.
Your assets are not considered when determining SSDI eligibility.
For SSI:
The SSA imposes strict income and resource limits.
In 2025, the resource limit is $2,000 for individuals and $3,000 for couples.
Income from most sources (including gifts, part-time work, and support from family) may reduce your SSI benefit.
Because of these constraints, SSI is designed specifically for individuals with very limited financial means.
4. Benefit Amounts
The amount you receive each month under SSDI or SSI can vary considerably.
SSDI benefits:
Are based on your average lifetime earnings before your disability.
In 2025, the average SSDI monthly benefit is approximately $1,500, though some individuals may receive more or less depending on their income history.
SSI benefits:
They’re set by federal standards and adjusted annually.
In 2025, the maximum federal benefit rate is $943 per month for an individual and $1,415 for a couple.
Your benefit may be reduced depending on your income and living situation.
It's worth noting that SSDI benefits are often higher because they reflect the earnings you contributed over your working life.
5. Health Insurance Coverage
Another important difference between SSDI and SSI is when and how recipients receive health insurance.
SSDI recipients:
Automatically become eligible for Medicare after a 24-month waiting period from the date they become eligible for benefits.
Medicare covers hospital care (Part A), outpatient care (Part B), and often prescription drugs (Part D).
SSI recipients:
They can typically become eligible for Medicaid immediately upon approval.
Medicaid provides comprehensive medical coverage, often including services not covered by Medicare, such as long-term care and personal care services.
This distinction can impact the type of medical support and treatment a person receives, depending on whether they’re approved for SSDI or SSI.
Can You Receive Both SSDI and SSI?
Yes, in certain cases, individuals may qualify for both SSDI and SSI at the same time. This is known as “concurrent benefits.” Concurrent benefits may be available when:
Your SSDI benefit is low due to limited work history or low lifetime earnings.
You meet SSI’s income and resource limits in addition to qualifying for SSDI.
Receiving both benefits can help supplement your monthly income and improve access to necessary services, especially in high-cost areas like Louisville or Owensboro.
How to Apply for SSDI or SSI in Kentucky
Whether you’re in Lexington or Hopkinsville, understanding the application process can help you get started. Here is what to expect:
Gather Documentation
Before applying, collect the following: medical records, treatment history, and contact information for your healthcare providers, employment history and earnings records (for SSDI), financial statements, including bank balances, rent or mortgage documents, and other income information (for SSI).
Submit Your Application
Applications for SSDI and SSI can be submitted online at the SSA’s official website, by phone at 1-800-772-1213, or in person at your local Social Security office
Each method has its pros and cons, but it’s recommended to speak with an attorney first to confirm your application is complete and accurate.
Follow Up and Respond Promptly
The SSA may request additional information or schedule a consultative exam. Respond quickly to all communications, as delays can harm your case.
Consider Legal Help If Denied
Most initial applications are denied, especially for SSI. If you receive a denial, don’t panic—this is common. We help clients appeal denials and build stronger cases through the reconsideration and hearing process.
Why Legal Help Matters
Working through SSDI and SSI benefits is often time-consuming. Unfortunately, even small errors in your application or missed deadlines can result in a denial.
A reputable attorney can help you determine which benefits you qualify for, assist with preparing and submitting a thorough, accurate application, guide you through the appeals process if your claim is denied, and advocate for you in administrative hearings and beyond
Contact Us Today
At Spencer Law Group, we’re committed to guiding our clients in Lexington, Bowling Green, Covington, Louisville, Owensboro, and Hopkinsville through every step of the Social Security process. Whether you're just beginning the application or appealing a denial, we’re here to provide trusted legal support. If you or a loved one needs help applying for SSDI or SSI benefits, contact Spencer Law Group today to schedule a consultation and start building a more secure future.