DOES SOCIAL SECURITY CONSIDER ASSETS?

In deciding a disability claim, does Social Security consider the claimant's assets?

It depends on the type of claim being filed. Assets are only considered in Supplemental Security Income (SSI) claims. In Social Security Disability (SSDI) claims, assets or income won't be considered.

The idea behind SSDI (also called Title 2) is to insured covered workers against disability. The "insurance company" is the Social Security Administration, and the "premiums" are contributions made by the employee and employer. Like any other insurance, a worker must "purchase" the disability benefits of SSDI. When you work, your employer must withhold Social Security taxes and submit them to the Social Security Administration. These deductions appear on your payroll stub as "FICA." These deductions are what pays for your Social Security disability "insurance." So, you must pay in before you can take out a benefit. A worker builds up "work credits" with each quarter of qualified earnings. In 2020, a worker receives 1 "work credit" for each calendar quarter in which he/she earns at least $1,410.

Therefore, a worker may earn up to 4 work credits per year, or 1 for each quarter. After 10 years of work in a qualifying job, the worker could have earned up to 40 quarters of coverage or "work credits."

For most workers, Social Security requires at least 20 quarters of coverage to be "insured" for SSDI disability program. In other words, the worker must have been employed for at least 5 years out of the most recent 10-year period. There are special rules for younger workers, who haven't had time to build up 20 quarters of coverage.

Again, the idea behind SSDI is insuring workers who may become disabled in the future. Thus, it is work credits, not assets or need that comes into play.

For Supplemental Security Income (SSI), it's all about financial need; there is no "insurance" or "insured status" involved, so individuals who are claiming SSI benefits do not need any work record at all. Instead, they will be found eligible or ineligible based on their financial need. Here is where income and assets come into play. Since SSI is a needs-based program, it is only available to persons with a very restricted amount of assets, or a very definite financial need.

WHICH IS BETTER, SSDI OR SSI?

SSDI usually pays a higher benefit. The average SSDI benefit in 2020 is around $1,200 per month, and the maximum benefit can be over $3,000 per month. However, SSI is designed to help an individual cover very basic needs. The maximum SSI benefit is $783 per month and may be lower, based on current household income and assets. The amount of SSDI benefits is based on the claimant's lifetime wages or earnings, while SSI benefits are based on need.

A disability attorney or "advocate" can help you decide which Social Security program you may qualify for, and the best way to get approved.