The Social Security Administration (SSA) offers a range of support programs to assist individuals in various circumstances. In fact, nearly 70 million people in the United States receive benefits from the SSA. Despite this, many individuals believe they may not qualify for assistance, but this assumption can often be incorrect. Many may be eligible for more help than they realize.
Each program provided by the SSA addresses the needs of different groups. However, understanding the specifics of each program can be overwhelming. This article aims to clarify some of the SSA’s most popular programs, their benefits, and eligibility criteria. The three main programs we will explore are:
Social Security Retirement Benefits
Social Security Disability Insurance (SSDI)
Supplemental Security Income (SSI)
Social Security Retirement Benefits
Most working adults contribute to Social Security taxes throughout their careers, but benefits are only accessible upon retirement, starting at age 62. The amount received varies based on several factors, including the individual’s age and work history.
A key aspect of eligibility is the concept of “retirement credits.” The more an individual works, the more credits they earn, which directly impacts their benefits. Generally, individuals need at least 40 work credits to qualify for retirement benefits, depending on their birth year.
Potential Benefits: The maximum monthly benefit for retirement is $4,194, though actual amounts depend on earnings over the highest 35 years of work. To maximize benefits, individuals can:
Delay retirement until age 70
Achieve the highest taxable income possible
Maintain at least 35 years of eligible work history
Social Security Disability Insurance (SSDI)
The SSA created SSDI to assist those who can no longer earn a living due to a disability. Applicants must have a certain amount of work history and provide documentation of their condition, which must be among the disabilities recognized by SSDI.
Benefits are calculated based on average earnings before the disability onset. As of 2022, the average SSDI benefit is around $1,223 per month, with a maximum benefit of $3,345 per month.
Supplemental Security Income (SSI)
SSI provides financial assistance to elderly individuals and those with disabilities, regardless of age, who have limited income and resources. This program aims to support those facing challenges in earning a livable wage.
Eligibility Requirements:
Be at least 65 years old, or
Have a disability (of any age), and
Have minimal income and resources.
Eligible individuals can receive SSI benefits as soon as their application is approved, with maximum payouts of $841 per month for individuals and $1,261 for couples.
How SSA Calculates Your Benefits
When determining eligibility for SSI, the SSA considers various sources of income, including:
Bank accounts
Cash
Stocks and bonds
To qualify for SSI, individuals must have resources valued under $2,000 (or $3,000 for couples). However, certain types of income are excluded, such as:
The first $20 of most monthly income
The first $65 earned from work (plus half of any earnings above that)
SNAP benefits
Housing or food assistance from nonprofits
Educational grants and scholarships