Are Social Security And Ssi The Same Thing

Social Security benefits replace a portion of your lifetime earnings when you retire, develop a qualifying disability or go to your spouse, children or survivors after you die. Unlike Social Security benefits, the Social Security Administration distinguishes that Supplemental Security Income (SSI) is not based on your work earnings or a family member’s work.

                By                    Josephine Nesbit                

Many people who are eligible for SSI may also be eligible for Social Security benefits, as both share the same application. However, SSI is a needs-based program for those with limited income and resources and is financed by the general funds of the U.S. Treasury — personal income taxes, corporate and other taxes. Social Security taxes do not fund the SSI program.

Here are some of the biggest differences between Social Security benefits and SSI, according to the SSA:

Social Security

• Your benefit amount is based on your lifetime earningsFinanced by employer and wage contributionsNo income or resource limitMust be “insured” or worked long enough and paid SS taxesMay be automatically enrolled in MedicareThere are different benefits types: retirement, survivor and disabilityProvides benefits to eligible family membersOther income does not affect benefits, except wages may affect benefits under full retirement age or disability benefitsWhere you live and your household does not affect your benefits

SSI

• Benefits are needs-basedFinanced by general fundsYou must have limited income and resources to qualify for SSIYou do not need work creditsMay qualify for Medicaid or Medi-Cal in CaliforniaThere are different benefit types: aged, disability and blindness No family benefitsYour benefit amount is based on federal and state lawsOther income may affect benefitsWhere you live and other members of your household could affect your benefits

It is worth noting that despite their difference, Social Security and SSI do have a few similarities, including that they are paid monthly and that the medical standards for disability are practically identical for both programs (at least for individuals age 18 or older).