Social Security, when referenced on its own, usually refers to retirement benefits created by our government-funded program in which a portion of the taxes you pay while working is placed into trust funds and, upon retirement, returned to you in the form of monthly payments intended to support your quality of life.
Disability, in reference to benefit payments like Social Security Disability Insurance (SSDI), refers to monthly payments provided to individuals who have earned enough work credits during their time in the workforce and can no longer engage in substantial work due to a long-term disability expected to last at least 12 months or result in death.
These two government-run social welfare programs are related in that they both provide financial support to eligible Americans, but they are certainly not the same thing. The main confusion lies in the correct verbiage surrounding disability benefit payments, which are called Social Security disability payments.
Social Security disability benefit payments (SSDI): Money paid each month to people who can’t work because of a serious, long-term disability and who worked enough in the past to qualify for the program.
Supplemental Security Income (SSI): A federal program that provides monthly payments to low-income individuals who are elderly, blind, or disabled. It’s not Social Security Disability (SSDI) because it’s need-based and not funded by Social Security taxes.
What Is Social Security?
Colloquially, when an individual says, “I’m receiving Social Security,” it’s typically in reference to Social Security retirement benefits. While the term “Social Security” can be all-encompassing — referring to the government program that provides monthly income to eligible individuals who are retired, disabled, or survivors of deceased workers — when stated on its own, it most often refers specifically to retirement benefits.
What Is Social Security Disability?
There can be some confusion here — Social Security disability and Social Security disability benefit payments often refer to SSDI. Sometimes, Supplemental Security Income (SSI) is lumped in because it is run by the Social Security Administration and can also be given to disabled individuals. However, SSDI is the Social Security disability program and is funded by its own trust, which — like retirement benefits — is supported by Social Security payroll taxes.
| The Key Differences Between Social Security, SSDI, and SSI | |||
|---|---|---|---|
| Category | Social Security (Retirement) | SSDI (Disability Insurance) | SSI (Supplemental Security Income) |
| A. Purpose | General term covering retirement, disability, and survivors benefits. | Specifically for individuals with qualifying medical impairments. | Provides financial aid to low-income individuals with disabilities, blindness, or age 65+. |
| B. Eligibility | Based on work credits and age (typically 62+). | Requires work history and a qualifying long-term disability. | Based on income and resources; no work history required. |
| C. Funding | Funded through payroll (FICA) taxes. | Funded through payroll (FICA) taxes. | Funded by general federal tax revenues (not payroll taxes). |
Common Misconceptions Surrounding Social Security, SSDI, and SSI
Many believe Social Security only refers to retirement. In terms of the literal definition, it means our federally-funded government programs that provide monthly income to eligible individuals who are retired, disabled, or survivors of deceased workers. SSDI is part of our broader Social Security system. Furthermore, while Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) have similar acronyms, they are separate programs with different eligibility requirements and funding sources.
The Most Important Misconception Around Social Security Disability
It is often believed that disability benefits are only given to, or meant for, elderly individuals — this is not true. Any individual who has paid into Social Security through their payroll taxes and has earned enough work credits may be eligible for SSDI if they meet the program’s qualification criteria.
If you’ve applied for SSDI due to a long-term disability that prevents you from working and have been denied, that’s where the team at Michael Armstrong Law can help you today.