When you retire, develop a qualifying disability, or die, Social Security benefits replace a portion of your lifetime earnings and are paid to your spouse, children, or other dependents.
Social Security payments are also paid to your estate. Supplemental Security Income (SSI) is different from Social Security benefits in that it is not based on your work earnings or the earnings of a family member. This is a distinction made by the Social Security Administration.
Because both SSI and Social Security payments are administered through the same application process, many people who are qualified for SSI may also be eligible for Social Security benefits.
SSI, on the other hand, is a needs-based programme for persons with limited income and resources, and it is funded by the general revenues of the United States Treasury, which are derived from personal income taxes, corporate taxes, and other sources of revenue.
The Supplemental Security Income (SSI) programme is not funded by Social Security taxes.
According to the Social Security Administration, the following are some of the most significant differences between Social Security benefits and Supplemental Security Income:
Social Security is a type of insurance
- The amount of your pension is determined by your lifetime earnings.
- Employer and employee contributions help to fund this programme.
- There are no restrictions on income or resources.
- It is necessary to be “insured” or to have worked long enough and paid enough Social Security taxes.
- It is possible to get automatically enrolled in Medicare.
- There are several distinct types of benefits: retirement, survivor’s benefits, and disability benefits
- Benefits are provided to eligible family members under certain conditions.
- Other sources of income have no impact on benefits, with the exception of wages, which may have an impact on benefits under the full retirement age or disability benefits.
- Your benefits are not affected by where you live or who lives in your family.
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- Benefits are determined by the individual’s requirements.
- The project is supported by general money.
- In order to qualify for SSI, you must have a limited income and resources.
- You are not required to have employment credits.
- In California, you may be eligible for Medicaid or Medi-Cal.
- There are several distinct types of benefits: Age, handicap, and blindness are all factors.
- There are no family benefits.
- The amount of your benefit is determined by federal and state laws.
- Other sources of income may have an impact on benefits.
- It is possible that your benefits will be affected by where you live and other members of your household.
In spite of their differences, Social Security and Supplemental Security Income (SSI) have certain parallels, notably the fact that they are both paid monthly and that the medical qualifications for disability are nearly equal in both programmes (see chart below) (at least for individuals age 18 or older).