Wednesday, July 7, 2021

"NEVER WORKED A DAY IN HIS LIFE BUT GETS SOCIAL SECURITY DISABILITY" ??????

There are a lot of myths, legends, superstitions and stories about Social Security disability and how it works.  One of my favorites is the street legend that we hear a lot:  "He never worked a day in his life but he still gets Social Security disability checks."

Of course, this is simply not possible.  In order to be covered for Social Security disability insurance (SSDI) a person must have worked and earned a minimum number of work credits.  For most individuals, they must have worked at least 5 years out the most recent 10-year period to be covered or "insured" by Social Security's Title II, which can pay a disability benefit.  Without work credits, no SSDI benefit is possible.

Part of the confusion lies in the fact that people confuse Social Security disability (SSDI) with Supplemental Security Income (SSI).  SSI is a welfare program for the very poor who are either elderly or disabled.  SSI requires no work history.  Because SSI is administered through the Social Security Administration, in cooperation with the state government, many folks confuse it with SSDI.  But SSI is not part of the Social Security disability program. It's really an income based program for the needy.

Here is a comparison or contrast:

SSDI                                             SSI

Paid for by workers who pay FICA tax                                Requires no work and no tax

Has no income restrictions to get benefits                            Has severe income restrictions

No restrictions on claimant's financial resources                   Severe restrictions on resources

Maximum benefit can be over $3,000 per mo.                    Maximum benefit is $791/mo.

Comes with Medicare after the waiting period                    Medicaid with no waiting period

Funds paid by the Social Security Trust Fund                      Pays from government revenue

Requires only medical proof of disability                            Requires medical proof of                                                                                                         disability AND financial need

Administered by Social Security Administration                The only thing that's the Same

 

 


 

 


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