Differences Between Supplemental Security Income & Social Security Benefits

The Social Security Administration administers both the Social Security programs -- retirement, disability and survivor benefits -- and Supplemental Security Income (SSI). However, SSI is not a Social Security benefit. In 1974, the SSA took over administering three welfare programs formerly run by individual states and counties -- old age assistance, aid to the blind and aid to the permanently and totally disabled. SSA renamed all programs as one: Supplemental Security Income.

Funding and Purpose

• Social Security taxes withheld from paychecks or paid by self-employed individuals fund Social Security programs. Supplemental Security Income receives all funding from the federal government, although some states supplement the payments with state revenues. Social Security replaces lost income due to retirement, death or disability and bases payment amounts on the earnings under Social Security. SSI provides a minimum income level for aged, blind or disabled persons with low income and resources. The government bases the benefit amount on fixed, federal benefit rates that the recipient's income may offset.

Benefits for the Aged

• Social Security pays monthly benefits to widows or widowers as early as age 60. Retirees can start collecting benefits as early as age 62. However, Supplemental Security Income pays benefits for the aged no earlier than 65. As of 2010, Social Security pays retirement benefits to more than 34 million former workers; over 2 million aged persons receive Supplemental Security Income.

Programs for Disabled

• The Social Security program pays disability benefits to workers, their disabled surviving spouses, and former spouses. It also pays benefits to disabled adult children of retired, disabled or deceased workers, if the child disability happened before age 22. There is a five-month waiting period for benefits to start. As of December 2009, 8.3 million recipients -- workers, disabled widows, widowers and disabled adult children -- receive monthly Social Security disability benefits.

  Supplemental Security Income for the blind or disabled uses the same definition of disability and blindness as Social Security. There is no waiting period and eligibility does not depend on payment of Social Security taxes. There are no benefits for dependents or survivors. In December 2009, 4.4 million SSI recipients received benefits based on disability; 1.3 million concurrently receive Social Security disability.

Benefits for Children

• Social Security pays benefits to the dependent children of eligible retired, disabled or deceased workers. Children's benefits cease at age 18 -- age 19 if the child is still in high school. Social Security does not pay a benefit for disabled minor children. As of December 2009, 3.2 million minors received dependents benefits.

  Supplemental Security Income does not pay benefits to dependents of eligible individuals. However, a child can receive SSI under his own Social Security number if she meets the definition of disability for children. The child's and the parent's income and resources determine eligibility and payment amount. Almost 1.2 million disabled children were receiving SSI in December 2009.

Health Insurance Coverage

• Social Security beneficiaries automatically receive Medicare coverage at age 65. Disabled Social Security recipients receive Medicare after 24 months of eligibility for disability benefits.

  Supplemental Security Income beneficiaries do not automatically qualify for Medicare benefits. However, most automatically qualify for Medicaid coverage, the nationwide health insurance program for low-income individuals.

Benefits Outside the U.S.

• Social Security beneficiaries who are U.S. citizens can receive benefits while outside the U.S. Non-citizens can also receive benefits while living outside the U.S. under some conditions.

  Absence of more than 30 days from the U.S. immediately suspends SSI benefits, unless the recipient is a dependent of U.S. military service members stationed outside the U.S.