Understanding the difference between Social Security and SSI
Before exploring how to receive concurrent benefits, it's crucial to understand the fundamental differences between Social Security retirement and Supplemental Security Income (SSI). Many people confuse the two because the Social Security Administration (SSA) handles both, but their eligibility requirements, funding sources, and purposes are distinct.
Social Security Retirement is an earned benefit based on your work history. You pay into the system throughout your working life via FICA taxes, and in exchange, you and your eligible family members can receive benefits in retirement. The amount you receive is based on your highest 35 years of indexed earnings and is not affected by other unearned income or resources. The program is funded by dedicated payroll taxes, which are held in special trust funds.
Supplemental Security Income (SSI), on the other hand, is a needs-based program funded by general tax revenues, not FICA taxes. It provides monthly payments to adults 65 or older, as well as blind or disabled adults and children, who have very limited income and resources. Unlike Social Security, SSI is not based on your work history, and your eligibility is determined by your current financial situation, including your income and assets.
How concurrent benefits work
When you apply for SSI, your Social Security retirement benefit is considered as a source of unearned income. The SSA uses a specific formula to calculate your countable income, which determines if you are eligible for SSI and how much you will receive.
- First $20 disregarded: The SSA first disregards the first $20 of most monthly unearned income, including your Social Security benefit.
- Income deduction: Your remaining Social Security benefit amount is then subtracted from the maximum federal SSI payment. The result is your potential SSI payment.
- Income threshold: If your total income is above the SSI federal benefit rate, you will not qualify for SSI. For 2025, the monthly federal benefit rate for an individual is $967. This means if your Social Security payment is higher than that amount (plus the $20 exclusion), you will not receive SSI.
Because of this calculation, the amount you receive in SSI benefits will be lower than the maximum federal rate, as it is reduced by your Social Security income. For many with very low retirement benefits, concurrent payments provide a much-needed financial boost. Approximately half of the seniors who receive SSI benefits also receive Social Security.
Other eligibility factors to consider
It's not just your income that matters. To be eligible for SSI while receiving Social Security, you must also meet strict resource limits.
- Resource limits: As of 2025, an individual cannot have more than $2,000 in countable resources, while a couple cannot have more than $3,000.
- What counts as a resource? Countable resources include cash, money in bank accounts, stocks, and bonds. The home you live in and one vehicle are typically excluded.
- Other requirements: You must also be a U.S. citizen, national, or qualified noncitizen, and live in one of the 50 states, the District of Columbia, or the Northern Mariana Islands.
Applying for both programs
If you believe you may be eligible for concurrent benefits, you can apply for both at the same time. The Social Security Administration will evaluate your eligibility for both programs and determine if you qualify for one or both. You can start the process online, by phone, or by visiting a local Social Security office. The SSA may also notify you during the application process for one benefit that you may be eligible for the other, prompting you to apply.
Comparative overview of SSI and Social Security
To further clarify the differences, here is a comparison table outlining the key features of each program.
| Feature | Social Security Retirement | Supplemental Security Income (SSI) |
|---|---|---|
| Basis of Eligibility | Based on your work history and earnings. Must have enough work credits. | Based on financial need. Must have limited income and resources. |
| Funding Source | Funded by dedicated Social Security payroll taxes (FICA). | Funded by general U.S. Treasury tax revenues. |
| Benefit Amount | Varies based on your average lifetime earnings. Higher earnings generally mean higher benefits. | Federal benefit rate is the same nationwide, with state supplements possible. Amount is reduced by countable income. |
| Income Limits | No income limits for entitlement. Working can affect benefits if not at full retirement age. | Strict income and resource limits to qualify. Other income, including Social Security, reduces benefits. |
| Resource Limits | No resource limits. | Strict resource limits ($2,000 individual, $3,000 couple). |
| Qualifying for Other Benefits | Eligibility for Medicare is linked to Social Security entitlement. | Eligibility for Medicaid and SNAP is often linked to receiving SSI. |
| Administering Agency | Social Security Administration (SSA). | Social Security Administration (SSA). |
What happens to your benefits over time?
If you are receiving both SSI and Social Security and your Social Security benefit increases due to a cost-of-living adjustment (COLA), your SSI benefit will likely be reduced. This is because the COLA increases your unearned income, which is then factored into the SSI calculation. This adjustment can sometimes result in little to no overall change to your total monthly income.
For those who continue to work in retirement, it's also important to understand how earned income affects your SSI payments. The SSA disregards a larger portion of earned income than unearned income. Specifically, the first $65 of monthly earnings plus half of any amount over $65 is not counted against your SSI benefit. This incentive is meant to encourage SSI recipients to work without losing all their benefits.
In conclusion, receiving both SSI and Social Security retirement benefits is a viable option for those with low retirement benefits and limited resources. It requires careful financial management and a clear understanding of the eligibility rules. For the most accurate and personalized information, it is always recommended to consult directly with the Social Security Administration or a qualified benefits counselor.
For more detailed information on SSI income rules, visit the official Social Security Administration website at https://www.ssa.gov/ssi/text-income-ussi.htm.
