Social Security Disability vs. Social Security Income

Attribute	Social Security Disability	Social Security Income
Eligibility	Based on disability and work history	Based on income and financial need
Benefit Amount	Based on earnings history	Fixed monthly payment
Medical Requirements	Must have a qualifying disability	No medical requirements
Work Requirements	Must have a work history	No work requirements
Age Requirement	Must be under full retirement age	No age requirement

Introduction

Social Security Disability (SSD) and Social Security Income (SSI) are two government programs that provide financial assistance to individuals who are unable to work due to a disability. While both programs are administered by the Social Security Administration (SSA), there are key differences between the two in terms of eligibility requirements, benefits, and funding sources.

Eligibility Requirements

One of the main differences between SSD and SSI is the eligibility requirements. SSD is available to individuals who have worked and paid into the Social Security system for a certain number of years. In order to qualify for SSD, an individual must have a work history and have paid Social Security taxes. On the other hand, SSI is a needs-based program that is available to individuals with limited income and resources, regardless of their work history.

Benefits

Another key difference between SSD and SSI is the amount of benefits that individuals can receive. The amount of SSD benefits is based on the individual's earnings history and the amount of Social Security taxes they have paid. The average monthly benefit for SSD recipients is around $1,200. On the other hand, SSI benefits are based on the federal benefit rate, which is set by the government each year. The maximum federal benefit rate for SSI in 2021 is $794 per month for individuals and $1,191 per month for couples.

Medical Requirements

In order to qualify for SSD, individuals must meet the SSA's definition of disability, which includes being unable to engage in substantial gainful activity due to a physical or mental impairment that is expected to last for at least 12 months or result in death. In addition, the impairment must be severe enough to prevent the individual from performing their past work or adjusting to other work. On the other hand, SSI does not have a specific medical requirement, but individuals must have a disability that prevents them from working and meet the income and resource limits set by the SSA.

Application Process

The application process for SSD and SSI is similar, but there are some differences. In order to apply for SSD, individuals must have a work history and have paid Social Security taxes. They can apply online, by phone, or in person at their local Social Security office. On the other hand, individuals can apply for SSI online, by phone, or in person, regardless of their work history. Both programs require individuals to provide medical evidence of their disability and financial information.

Funding Sources

SSD is funded through the Social Security trust fund, which is financed by payroll taxes paid by workers and employers. The trust fund is separate from the general fund of the U.S. government and is used to pay benefits to retired workers, survivors, and individuals with disabilities. On the other hand, SSI is funded through general revenues of the U.S. Treasury, which includes income taxes, corporate taxes, and other sources of revenue. SSI is considered a welfare program, while SSD is considered an insurance program.

Conclusion

In conclusion, Social Security Disability and Social Security Income are two important programs that provide financial assistance to individuals with disabilities. While both programs are administered by the SSA, there are key differences in terms of eligibility requirements, benefits, medical requirements, application process, and funding sources. Understanding these differences can help individuals determine which program they may be eligible for and how to apply for benefits.