SSDI stands for Social Security Disability Insurance

SSDI is a federal program run by the Social Security Administration that pays monthly benefits to people who have worked and paid Social Security taxes, but can no longer work because of a medical condition expected to last at least 12 months or result in death. It is not the same as SSI (Supplemental Security Income), which is a needs-based program for people with low income and few assets.

The key word in the name is "Insurance." You paid into this program through payroll taxes while you worked. SSDI is your insurance benefit — money you earned the right to receive by working and contributing to Social Security. The amount you receive each month depends on your work history and how much you earned, not on how much money you have now.

SSDI is different from other disability programs because it is based on your own work record, not your parents' record (though family members may receive benefits on your record if you are approved). It is also different from workers' compensation or disability insurance through an employer, which are separate programs entirely.

Key Takeaways

  • SSDI stands for Social Security Disability Insurance and is a federal program for people who have worked and paid Social Security taxes but can no longer work due to a serious medical condition.
  • Your monthly benefit amount is based on your own work history and earnings, not on your current financial need.
  • You must have a medical condition that is expected to last at least 12 months or result in death to be considered for SSDI.
  • Family members, including spouses and children, may receive benefits based on your work record if you are approved for SSDI.
  • SSDI is different from SSI (Supplemental Security Income), which is a separate program for people with limited income and resources.

How SSDI differs from SSI

Both SSDI and SSI are run by the Social Security Administration, and both provide monthly cash payments to people with disabilities. But they are based on different rules and serve different groups of people.

SSDI is based on your work history. To receive SSDI, you must have worked long enough and paid enough Social Security taxes. The amount you receive depends on what you earned. There is no limit to how much money or property you can own while receiving SSDI.

SSI is based on financial need. You do not need a work history to receive SSI. Instead, you must have limited income and very few assets — the limits are set by federal law and change each year. SSI is designed for people who have never worked enough to build up a Social Security record, including children and people who became disabled before they could work.

Some people receive both SSDI and SSI at the same time. This happens when your SSDI benefit is very small but you still meet the financial limits for SSI. The SSI payment makes up the difference.

Who can receive SSDI

To receive SSDI, you must meet three requirements: you must have a medical condition that prevents you from working, that condition must be expected to last at least 12 months or result in death, and you must have worked long enough and paid enough Social Security taxes.

The Social Security Administration maintains a list called the Blue Book that describes medical conditions they recognize as disabling. The conditions listed include arthritis, cancer, diabetes, heart disease, mental illness, back injuries, and many others. However, having a condition on the list does not automatically mean you will receive SSDI. The Social Security Administration must also determine that your condition prevents you from doing any kind of work.

The work requirement is strict. You must have worked at least five of the last ten years (for most people under 31, the requirement is shorter). You also must have earned enough credits — the Social Security Administration awards credits based on how much you earned each year, and you need a certain number of credits to be considered for SSDI.

Age does not matter for SSDI may be able to access. People in their 20s, 40s, and 60s can all receive SSDI if they meet the work and medical requirements. However, once you reach full retirement age, your SSDI benefit automatically converts to a retirement benefit, though the amount stays the same.

Family members who can receive benefits on your SSDI record

If you are approved for SSDI, your family members may also receive monthly benefits based on your work record. This includes your spouse (at any age if they are caring for your child under 16, or at age 62 or older), your ex-spouse (if you were married at least 10 years and they are 62 or older), and your children (up to age 19 if they are in high school full-time, or up to age 18 if they are not in school).

Children with disabilities can receive benefits on your record for as long as they are disabled, even after age 18. Grandchildren and step-grandchildren may also receive benefits in some cases, but the rules are more complex.

The total amount paid to your family cannot exceed a certain percentage of your own benefit — usually between 150 and 180 percent. If multiple family members receive benefits, the payment is divided among them, and each person's share may be smaller than your own benefit.

How much SSDI pays each month

Your monthly SSDI benefit is based on your average earnings over your working years. The Social Security Administration uses a formula that takes your highest 35 years of earnings, adjusts them for inflation, and calculates a monthly amount.

The average SSDI benefit varies widely depending on your work history. Someone who worked full-time at higher wages will receive a larger benefit than someone who worked part-time or at lower wages. The Social Security Administration publishes average benefit amounts each year, but your own benefit depends entirely on your earnings record.

You can see an estimate of your SSDI benefit by creating an account on the Social Security Administration website at ssa.gov and viewing your earnings record. The estimate will show you what you might receive if you were approved today, based on your work history so far.

How to understand your SSDI notice

If the Social Security Administration approves you for SSDI, you will receive a notice in the mail that explains your benefit amount, your start date, and information about how your family members can receive benefits. The notice will also explain your rights and responsibilities — for example, that you must report changes in your medical condition or work activity.

The notice will include your Primary Insurance Amount (PIA), which is the monthly benefit you receive. It will also show the Family Maximum, which is the total amount that can be paid to you and your family members combined.

Keep this notice in a safe place. You will need it to prove your SSDI status to employers, landlords, or other organizations. You can also request a replacement notice from the Social Security Administration if you lose it.

Frequently Asked Questions

Is SSDI the same as disability insurance from my employer?

No. SSDI is a federal program based on your Social Security work record. Employer disability insurance is a separate benefit that some employers offer. You may be able to receive both, but they are different programs with different rules and payment amounts.

Can I receive SSDI if I have never worked?

No. SSDI requires a work history and Social Security tax contributions. If you have never worked or have not worked long enough, you may be able to receive SSI instead, which does not require a work history. Contact the Social Security Administration to learn which program you might be able to receive.

What happens to my SSDI when I reach retirement age?

Your SSDI benefit automatically converts to a retirement benefit at your full retirement age. The monthly amount stays the same, but the program name changes. You will continue to receive the same payment for the rest of your life.

Can my adult child receive SSDI benefits on my record?

Yes, if your child became disabled before age 22. Children with disabilities can receive benefits on your SSDI record for as long as they remain disabled, even after they turn 18 or 21. The Social Security Administration must determine that the disability began before age 22.

How do I find out what my SSDI benefit would be?

Create a my Social Security account at ssa.gov to view your earnings record and see an estimate of your benefit. You can also call the Social Security Administration at 1-800-772-1213 (TTY 1-800-325-0778) to speak with a representative who can explain your benefit estimate.