How long can you live outside the United States before you lose Social Security?
These days, many Americans are planning to retire abroad. Some people do it to live in peace, while others do it to save money on everything from housing costs to food. But one of the questions that comes to mind for many people planning to retire abroad is whether they will be able to collect Social Security and how long they can live abroad without losing it. In this article, we’ll try to answer all those questions, including how long you can live outside the United States before receiving Social Security benefits.
You can retire abroad and receive benefits
It’s no secret that people from all over the world come to the United States to make more money. Meanwhile, when it comes to retirement, many Americans are now considering settling abroad, for a variety of reasons including seeking a lower cost of living, new adventures or affordable health care.
In fact, according to 2022 data released by the U.S. Department of State, the Social Security Administration (SSA) paid approximately $6.1 billion in benefits to approximately 760,000 beneficiaries outside the United States.
If you’re planning to retire abroad but are hesitant due to concerns about Social Security or have questions about how long you can live outside the United States before losing Social Security, rest assured that your benefits are safe even if you retire abroad. With a few exceptions, you will continue to receive Social Security checks even if you retire overseas.
When we talk about how long you can live outside the United States before losing your Social Security benefits, rest assured that you will continue to receive Social Security benefits in retirement regardless of how much time you spent abroad.
However, before you book a ticket to your retirement destination, it is important to fully understand the SSA rules for receiving benefits abroad.
As mentioned above, there are no time limits on receiving Social Security benefits abroad. If you are eligible for benefits and submit proof of living annually, you will receive a benefit check each month.
People retiring overseas must complete Form SSA-7162 in addition to the normal Social Security process. This two-page form asks the beneficiary about changes in residence and marital status. Beneficiaries receive this form from SSA every one to two years. SSA may stop payment of benefits if the beneficiary does not submit this form.
Beneficiaries who receive benefits abroad must also file a U.S. tax return. Taxes on foreign Social Security benefits are generally the same as those for retirees living in the United States. It’s important to note that if you receive a pension from a foreign government, your monthly check may be reduced.
Countries not eligible for SS benefits
As mentioned above, with a few exceptions, Americans can receive Social Security checks in any country in which they retire. Currently, the United States does not have social security agreements with nine countries.
Therefore, if you plan to retire in these countries, you will not be able to receive U.S. Social Security benefits. These countries are Azerbaijan, Belarus, Cuba, Kazakhstan, Kyrgyzstan, North Korea, Tajikistan, Turkmenistan, and Uzbekistan.
Even if you live in that country, your payments won’t disappear forever. If you live in one of the countries mentioned above, any benefit payments you are entitled to will be paid retroactively after you move to another country (except those 9 countries).
If I retire overseas, will I be eligible for Medicare?
Unlike Social Security benefits, Medicare is not available outside the United States. However, if you retire abroad, you are still eligible for Part A, which essentially covers hospital and other inpatient stays once you return to the United States.
If you plan to live outside the United States for an extended period of time, you may not want to enroll in Part B, which covers the cost of doctor visits and other outpatient care. This is because insurance premiums are deducted from your Social Security check. However, if you enroll in Part B later, you will have to pay an additional 10% premium for each year you delay enrolling in Part B.
Tips if you plan to live outside the United States
You can easily apply for benefits through SSA’s online accounts for workers and retirees. However, you will need to provide a US address to open that online account.
It is important for retirees to apply for benefits before leaving the country. If you were unable to open a Social Security account before leaving the country, you will not be able to apply online and must instead visit a federal benefits office at a U.S. embassy.
We recommend that you do not deposit your Social Security checks into a foreign bank account because you may not receive the best exchange rate. To earn maximum profits, you must create and maintain a US account. This will allow you to deposit U.S. dollar-denominated benefit checks into your U.S. account. You can later transfer the money to your overseas account when the exchange rate is good.
Another important thing for expats to remember is that their foreign spouse may be eligible for spousal benefits even if they have no U.S. work history.
last words
Social Security is a complex program, made even more complicated by foreign regulations. SSA staff may not always be able to give you advice. Therefore, it is recommended to seek help from an expert with experience in receiving overseas benefits. This will help you maximize your benefit payments. If you live abroad, contact SSA’s Office of Earnings International Operations (OEIO) to learn more about your benefits.
