American workers pay into Social Security through payroll deductions. In doing so, they eventually become eligible for not only retirement benefits, but also disability benefits. The amount of the disability benefit, like the amount of the retirement benefit, is based on how much has been paid in and will be higher for higher wage earners. If found disabled, an individual can continue to collect SSD benefits regardless of how much money they may have in a bank account, how much real property they own, and even if they inherit large sums of money or hit the lottery!
Supplemental Security Income (SSI) benefits, on the other hand, are paid to disabled individuals who meet strict income and resource limitations. SSI is basically a welfare program for disabled individuals, including those with little or no work history. A single adult can have no more than $2,000 in resources in order to qualify for SSI benefits, while a married couple can have no more than $3,000 in assets. Assets include everything from money in a bank account to a retirement account or life insurance policy that has a cash value. A home that is used as the disabled individual’s primary residence, and usually one vehicle, are not counted as resources.
Some disabled individuals, generally low wage earners, do qualify for both SSD and SSI payments, provided the amount of the monthly SSD benefit is less than the maximum SSI benefit (currently $841 per month).
