What Is the Difference Between SSI & Social Security Benefits?

Social Security provides limited retirement benefits as well as other benefits to disabled and lower-income people.

Social Security was established in 1935 when Congress passed the Social Security Act. Social Security was designed to provide a system of retirement benefits for elderly people, in addition to providing for the care of disabled people as well as a general welfare system to provide for many different types of needy people. This has branched out into two forms of benefits paid under the Social Security umbrella---Social Security Benefits and SSI. These programs are funded by a tax on payroll income.

Social Security Retirement Benefits

Social Security retirement benefits are the most well-known of all of the Social Security benefits. This is where you can receive a monthly payment at retirement. The amount of the payment varies, depending on when you start drawing benefits. As of now, the earliest you can draw benefits is at age 62, but waiting until age 65 or older will allow you to collect a higher benefit per month. The amount of benefit depends on how much you have paid in for payroll taxes over the years.

Social Security Disability Benefits

You receive Social Security disability benefits if you become disabled and unable to work. The government pays these benefits based on your eligibility, which in turn is based on how many quarters of years you have worked. These benefits do not depend on your income being below a certain amount. Benefits are payable if you are blind or widowed as well. Benefits for widows are called survivor's benefits.

SSI Benefits

SSI, or Supplemental Security Income, is a form of Social Security disability benefit that does not require you to have worked a certain number of quarters of the year to qualify. SSI is based on financial need. It is possible for a person to receive SSI benefits who has never worked before, and subsequently, has never paid Social Security taxes. SSI benefits are payable to either adults or children who qualify under the income guidelines.

Applying for Benefits

The application process is similar for any of the Social Security benefits. Contact your local Social Security office to apply. You can also apply in person, if possible. For Social Security benefits for retirement, you need to provide proof that you are at retirement age, as well as provide proof that you have earned enough quarters to qualify. To apply for Social Security disability, you will need to provide supporting documents to your disability. The Social Security office will assign someone to verify your disability. SSI benefits are applied for in the same way, but you must also demonstrate a financial need, and proof of it to qualify.

References

• Social Security Administration: Differences between Social Security disability and SSI disability
• Encyclopedia.com: Income Support For Non-workers, National Approaches
• National Archives: Social Security Act

Resources

• Social Security Administration: Differences between Social Security disability and SSI disability