SSI vs. SSDI: How Your Settlement Affects Each

Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) are both run by the Social Security Administration, and both relate to disability, which is why people mix them up. But they work on completely different rules, and that difference is everything when a settlement is involved.

SSI is needs-based: you qualify based on having limited income and resources. In 2026, the SSI resource limit is $2,000 for an individual, and the maximum federal benefit is $994 per month. SSDI, by contrast, is an earned benefit based on your work history and the Social Security taxes you have paid; it does not have an asset limit.

Because SSI has a $2,000 resource limit, a settlement paid directly to you can disqualify you from SSI almost immediately, the same trap that affects Medicaid. To keep SSI, the settlement generally needs to be held in a properly structured trust so it is not counted as a resource.

SSDI is different. Because it is based on your work record rather than your assets, receiving a settlement generally does not affect your SSDI benefit. You can have substantial resources and still receive SSDI. This is why it is so important to know which program you actually have before making decisions about your settlement.

Many people are not certain whether they receive SSI, SSDI, or both, and some receive both. The planning is different for each. If SSI (or Medicaid, which often travels with SSI) is in the picture, protecting the settlement in a trust is critical. If only SSDI is involved, the asset concern is different. Sorting this out early, with professional guidance, prevents costly mistakes.