The Social Security Administration, which is a federal program, provides many types of benefits, some of which have similar names. This can be confusing when you first begin to explore the options available.
The basic categories are:
- Retirement Benefits, often referred to as simply “Social Security” and may show up on your bank statement as SSA (monthly retirement income based on lifetime earnings, after age 62+, must have paid in to the system for at least 10 years; not means-tested).
- Disability Benefits, known as Social Security Disability Insurance or SSDI (a monthly payment for people whose disability limits their ability to work and who paid in to the system for at least 5 years; not means-tested)
- Supplemental Security Income, known as SSI (a means-tested program for people with minimal income and resources and who qualify based on disability or age, but no requirement to have paid into the program for any number of years)
In many situations, survivors and family members may be eligible for additional benefits.
In particular, SSI and SSDI are often confused with one another:
To be eligible for SSI, one must have limited income and resources (in 2026, this income/resource limit is $2,000). In addition to having limited income/resources, one must either be aged 65 or older or have a long-term disability that prevents them from working.
To be eligible for SSDI, one must have a long-term disability and have worked for at least five years to qualify. Income and resources are not considered for eligibility.
The SSI benefit amount is based on financial need. In 2026, this is a maximum benefit of $994 per month.
The SSDI benefit is based on lifetime earnings. In 2026, the maximum benefit if $4,152 per month; the average, however, is about $1,540.
As if the three benefits listed above (retirement, disability, and supplemental) were not complicated enough, health benefits can also be related to Social Security:
- Medicare Health Insurance, usually just called “Medicare,” is also part of the federal Social Security Administration’s oversight (free health insurance available for those age 65+, or have end-stage renal disease, or who receive disability benefits).
- Medicaid is a joint federal and state program that provides health coverage to some people with limited income and resources. Each state runs its own program (based on general rules provided by the federal government), so it is separate from the Social Security Administration. In Maine, the program is called “MaineCare.” Within this program, there are multiple types of coverage that can be based on age, or means, or disability.
It can be very challenging to navigate these programs and understand what might affect eligibility, particularly for benefits that are means-tested. When people do estate planning and consider leaving gifts for someone on means-tested benefits, it is important to consider the possible impact of this gift and, perhaps, alternative options available.
For a beginning place to get more information: https://www.ssa.gov/benefits
Rev 1/26
The information presented on this website is general in nature and not intended to be legal advice. No attorney-client relationship will exist with JKS, LLC unless agreed to in writing. Please contact us to discuss your particular situation.
