What Supplemental Security Income for the Aged Covers

Supplemental Security Income (SSI) is a federal cash program run by the Social Security Administration that pays monthly to people aged 65 and older, blind people of any age, and disabled people under 65 who have very little income or resources. For people over 65, SSI provides a monthly payment if you meet the income and resource limits, regardless of your work history. You do not need to have worked or paid Social Security taxes to receive it.

The program is means-tested, meaning your own income and assets determine whether you receive a payment and how much. SSI is separate from Social Security retirement benefits — you can receive both, but they are administered differently and have different rules about how much you can earn while receiving payments.

SSI payments go directly to you each month. The amount varies by state because some states add money to the federal base payment. In 2024, the federal base payment for an individual is $943 per month, but your state may pay more. You can contact your local Social Security office or visit ssa.gov to find your state's current amount.

Key Takeaways

  • SSI for people over 65 requires you to be at least 65 years old and have monthly income below a set limit and countable resources under $2,000 for an individual.
  • You do not need a work history or prior Social Security contributions to receive SSI, making it different from retirement benefits.
  • Some states add their own money to the federal payment, so the total amount you receive depends on where you live.
  • Earned income, unearned income, and certain in-kind support all count toward your income limit and reduce your monthly payment.
  • You must report changes in income, living situation, or resources within 10 days to keep your payments correct.

Income Limits and How Your Money Counts

To receive SSI as a person over 65, your monthly countable income must be below the federal benefit rate for your state. Countable income includes wages from work, Social Security benefits, pensions, rental income, and most other money coming in. However, not all income counts the same way.

The first $65 of earned income (money from a job) and the first $20 of any other income do not count toward your limit. After that, half of your earned income is excluded from the calculation. This means you can work and still receive some SSI, but your payment will be reduced by roughly 50 cents for every dollar you earn above the $65 threshold. Unearned income like Social Security, pensions, or gifts reduces your SSI payment dollar for dollar after the $20 exclusion.

In-kind support — such as food or shelter someone gives you for free — also counts as income. If someone pays your rent or buys your groceries, that reduces your SSI payment. The reduction is typically one-third of the federal benefit rate, but the exact amount depends on your situation and state rules.

Resource Limits and What You Can Own

SSI has strict resource limits: you can own no more than $2,000 in countable resources as an individual, or $3,000 if you are married and both spouses receive SSI. Resources are things you own that can be turned into cash, such as bank accounts, stocks, or a second home. Your primary home and one vehicle do not count toward the limit, no matter their value.

Some resources are not counted at all. These include household goods and personal effects, life insurance with a face value under $1,500, and certain retirement accounts like IRAs and 401(k)s (though the rules are complex and depend on whether you can actually access the money). Burial plots and burial funds set aside for you or your spouse also do not count.

If you own more than the limit, you are not when ready disqualified — you have time to spend down or give away the excess. However, if you give away resources to become may be able to access, Social Security may impose a penalty period during which you cannot receive SSI. The penalty period is calculated based on the value of what you gave away and the current federal benefit rate in your state.

How to Report Your Situation to Social Security

You must report changes to Social Security within 10 days. Changes that require reporting include a new job or a change in wages, a move to a different address, a change in living arrangements (such as moving in with family), receipt of a new income source, a change in your resources, or a change in your marital status.

You can report changes by calling Social Security at 1-800-772-1213, visiting your local Social Security office in person, or using your my Social Security account online at ssa.gov. If you miss the 10-day window, Social Security may overpay you, and you will be asked to repay the difference. Reporting on time protects you from owing money back.

Social Security also conducts periodic reviews of your case, called continuing disability reviews for disabled recipients and aged case reviews for people over 65. During a review, you may be asked to provide documents showing your income, resources, and living situation. Responding to these requests on time is important — failure to do so can result in your benefits being stopped.

Work Incentives and Earning While on SSI

Unlike some other information programs, SSI allows you to work and continue receiving a reduced payment. The program includes built-in work incentives designed to encourage people to earn money without losing all their benefits at once.

As mentioned earlier, the first $65 of monthly earned income is not counted, and half of earnings above that are excluded. This means if you earn $200 per month, only $67.50 counts toward your income limit ($200 minus $65, then half of the remaining $135). Your SSI payment would be reduced by roughly $67.50, but you would keep both the $200 in wages and a reduced SSI payment.

There is no limit on how much you can earn — you can work full-time and still receive SSI if your countable income stays below the limit. However, once your countable income exceeds the federal benefit rate, your SSI payment stops. At that point, you may still be able to receive Medicaid, which is a separate benefit with its own income rules.

Medicaid and Other Benefits You May Receive With SSI

In most states, receiving SSI automatically makes you may be able to access for Medicaid, the joint federal-state health insurance program for people with low income. Medicaid covers doctor visits, hospital care, prescription drugs, and long-term care services. In a few states, you must meet a separate income test for Medicaid, but in most places, SSI enrollment opens the door to Medicaid without additional paperwork.

You may also be may be able to access for SNAP (the Supplemental Nutrition information Program, formerly called food stamps) based on your SSI income. SNAP has its own income limits and rules, but many SSI recipients may have access to. Some states have simplified the process so that SSI recipients are automatically screened for SNAP.

If you receive SSI and live in a state that provides supplemental payments, you receive both the federal amount and the state addition. Some states also offer programs that help SSI recipients pay for utilities, housing repairs, or other expenses. Your local Social Security office can tell you what additional programs are available in your state.

How SSI Differs From Social Security Retirement Benefits

SSI and Social Security retirement are often confused because both are run by Social Security Administration, but they work very differently. Social Security retirement is based on your work history — you must have worked and paid Social Security taxes for a certain number of years to receive it. The amount you get depends on how much you earned and when you claim.

SSI has no work history requirement. It is a needs-based program: you receive it because your income and resources are low, not because you worked. You can receive both SSI and Social Security retirement at the same time. If your Social Security payment is small, SSI can top it up to the federal benefit rate. If your Social Security payment is larger than the SSI rate, you receive only Social Security and no SSI.

The income counting rules are also different. Social Security retirement has no resource limit — you can own a million dollars and still receive your full retirement benefit. SSI has the $2,000 resource limit described above. Social Security retirement has no limit on how much you can earn, but SSI reduces your payment based on earnings. Understanding which program you are on matters because the rules that affect your payment are not the same.

Frequently Asked Questions

Can I receive SSI if I am already getting Social Security retirement?

Yes. If your Social Security retirement payment is less than the SSI federal benefit rate, SSI will top up your payment to that amount. If your retirement payment is equal to or larger than the SSI rate, you receive only retirement and no SSI. You can receive both programs at the same time.

What happens to my SSI if I move to a different state?

Your SSI payment may change because some states add money to the federal base amount. When you move, report your new address to Social Security within 10 days. Social Security will recalculate your payment based on your new state's rules. Your Medicaid coverage may also change depending on your new state's program.

Can I give money to my children or grandchildren without losing SSI?

Giving away money or resources can trigger a penalty period during which you cannot receive SSI. The length of the penalty depends on how much you gave away and your state's federal benefit rate. If you want to help family members, speak with a Social Security representative or a benefits counselor first — there may be ways to do it that do not affect your benefits.

Do I lose SSI if I inherit money or property?

An inheritance counts as a resource. If the inheritance pushes your total resources above $2,000, you will become ineligible for SSI until you spend it down below the limit. However, you have time to spend down the excess — you are not when ready cut off. Some types of inherited property, such as a home you inherit and move into, may not count as a resource.

How often does Social Security review my SSI case?

Social Security conducts aged case reviews for people over 65 periodically, but there is no fixed schedule. You may be reviewed every one to three years, or longer if your situation is stable. When you receive a review notice, you will have a important date to provide documents showing your income and resources. Responding on time keeps your benefits active.