If you're new to disability benefits, the alphabet soup of Social Security programs can feel overwhelming. SSI and SSDI sound almost identical, and people often use the terms interchangeably—but they're actually two very different programs with different rules, different eligibility requirements, and different implications for your financial life.
In this article, we'll cover:
- What SSI is and who qualifies for it
- What SSDI is and how eligibility is determined
- The key differences in payment amounts and funding sources
- How each program affects your healthcare coverage
- The different rules around resources and working
- Whether you can receive both benefits at once
What Is SSI?
Supplemental Security Income, or SSI, is a needs-based program designed to provide a financial floor for people who are aged, blind, or disabled and have very limited income and resources. It's funded by general tax revenue, not Social Security taxes, which is why the eligibility rules focus on your current financial situation rather than your work history.
To qualify for SSI based on disability, you must have a medical condition that prevents you from engaging in substantial gainful activity and is expected to last at least 12 months or result in death. You must also have countable resources below $2,000 as an individual or $3,000 as a couple, and your income must be below certain thresholds.
The maximum federal SSI payment in 2026 is $994 per month for an individual and $1,491 for a couple. Many states add a supplement on top of this amount. Your actual payment may be lower if you have other income, since SSI is designed to bring you up to the payment standard rather than provide a flat amount regardless of circumstances.
What Is SSDI?
Social Security Disability Insurance, or SSDI, works more like a traditional insurance program. You earn coverage by working and paying Social Security taxes (the FICA taxes you see on your paycheck), and if you become disabled, you receive benefits based on your earnings history.
To qualify for SSDI, you need to meet the same medical definition of disability as SSI, but instead of meeting income and resource limits, you need sufficient work credits. Most people need 40 work credits total, with 20 of those earned in the 10 years before becoming disabled. In 2026, you earn one credit for every $1,890 in wages, up to four credits per year.
Because SSDI is based on your work history, payment amounts vary widely. The average SSDI payment in 2026 is approximately $1,630 per month, but payments can range from a few hundred dollars to the maximum of $4,152 per month depending on your lifetime earnings.
The Fundamental Difference: Need vs. Insurance
The simplest way to think about SSI versus SSDI is this: SSI asks "Do you need help now?" while SSDI asks "Did you pay into the system?"
SSI functions as a safety net for people who are disabled and poor, regardless of whether they ever worked. A person who became disabled in childhood and never held a job can qualify for SSI. Someone who worked for decades in a cash economy and didn't pay Social Security taxes might qualify for SSI but not SSDI.
SSDI functions as disability insurance that you've earned through your work contributions. Your benefit amount reflects your earnings during your working years, and there's no limit on how much money or resources you can have while receiving SSDI.
Healthcare Coverage Differences
One of the most significant differences between SSI and SSDI is how they connect to health insurance.
SSI recipients automatically qualify for Medicaid in most states. Medicaid begins immediately when your SSI benefits start, which is crucial since people with disabilities often have significant healthcare needs.
SSDI recipients qualify for Medicare, but there's a 24-month waiting period from when your disability began. This creates a dangerous gap where you're too disabled to work but don't yet have the health coverage that comes with SSDI. Many people end up relying on COBRA, marketplace plans, or Medicaid (if they're low-income enough to qualify) during this waiting period.
Resource Limits: The Critical Distinction
This is where the programs diverge most dramatically for day-to-day financial life.
SSI has strict resource limits. You cannot have more than $2,000 in countable resources ($3,000 for couples). Countable resources include bank accounts, cash, stocks, and many other assets. Your home and one vehicle are generally excluded, but most other things of value count. Going over this limit, even briefly, can result in losing your benefits.
SSDI has no resource limit whatsoever. You can have savings accounts, investments, multiple properties—it doesn't matter for SSDI eligibility. Your benefit is based on your work history and disability status, not your current wealth.
This difference has enormous implications for financial planning. SSDI recipients can save money, build emergency funds, and accumulate wealth without affecting their benefits. SSI recipients must carefully monitor every dollar and strategically manage their resources to stay under the limit.
Rules Around Working
Both programs allow you to work to some degree, but the rules differ.
For SSI, your benefits are reduced based on your earnings after certain exclusions. Generally, your SSI payment decreases by $1 for every $2 you earn above $65 per month. This means working provides some additional income, but the benefit reduction can feel punishing.
For SSDI, the rules center around Substantial Gainful Activity, or SGA. In 2026, the SGA limit is $1,690 per month for non-blind individuals and $2,830 for blind individuals. If you consistently earn above SGA, Social Security will eventually determine you're no longer disabled and end your benefits—though programs like Trial Work Period and Extended Period of Eligibility provide some protection while you test your ability to work.
Can You Receive Both SSI and SSDI?
Yes, and this is more common than you might think. People who receive both are called "concurrent beneficiaries."
This typically happens when someone qualifies for SSDI but their payment amount is very low—usually because they became disabled young or had low earnings during their working years. If your SSDI payment is below the SSI payment standard, you may receive SSI to make up the difference.
For example, if your SSDI payment is $600 per month and the SSI payment standard in your state is $994, you might receive approximately $394 in SSI to bring your total up to the standard (the exact calculation is more complex, but this illustrates the concept).
Concurrent beneficiaries must follow SSI rules, including the resource limit, because they're receiving SSI benefits. This is an important point that catches some people off guard.
Why This Matters for Your Financial Life
Understanding which program you receive—or both—is essential for managing your finances without accidentally jeopardizing your benefits.
If you receive only SSDI, you have significantly more financial freedom. You can save money, accept gifts, and build wealth without worrying about resource limits.
If you receive SSI, either alone or concurrently with SSDI, you need to carefully track your resources and understand what counts toward the $2,000 limit. Tools like ABLE accounts can help you save without affecting your eligibility, and choosing the right bank account matters.
Purple was built specifically for people navigating these complex rules. Whether you're on SSI, SSDI, or both, our checking account helps you understand your financial picture and stay compliant with Social Security requirements.