American Expat Social Security and Retirement Abroad

Retirement with Social Security is often the only source of income for a person with little other opportunities once he or she reaches the age of retirement. However, when the individual leaves the country, he or she may need to communicate with the Social Security Administration to determine what steps he or she needs to take to keep receiving the income.

Social Security is one of the few payments that a person may receive at the age of retirement from the Administration without fail even when moving to or residing in another country. And while this usually holds true, some benefits are lost such as Medicaid and other United States-based healthcare programs for a person at retirement age. It is also important to note that some countries do not provide the person with the ability to receive Social Security. The individual must remember this and plan accordingly when outside of the country. Some may need to consult with a Social Security lawyer before moving away or traveling to another area of the globe.

Supplemental Income

Social Security is often only one of the types of income a person receives when reaching retirement age. He or she may use this income as a supplement to others such as a pension or retirement income account he or she sets up earlier. If the person is part of the military before retiring, he or she may have other accounts available along with benefits in use until outside of the country. Even with the supplemental income, the person may need to purchase insurance from the country he or she moves to for the duration of retirement abroad.

Loss of Benefits

When a person leaves the country, any specific benefits from the Social Security Administration to a person outside of the United States generally end. This normally includes Medicaid and other benefits similarly that only exist in the country. However, the monetary support that the person pays into the Social Security during his or her lifetime of working is available as long as he or she is not within the exempt countries. The person has 30 days from the time he or she leaves the nation before the benefits cut off, but Medicaid is usually not available outside of the American government.

Affected Benefits

If the person leaving the country works elsewhere but still receives Social Security benefits, he or she may face a reduction in payments depending on foreign pension and similar income. This may impact the amount he or she receives through the Administration. He or she may need to contact the Administration through an embassy and determine how working abroad will reduce income and other benefits. Retirement accounts may also require discussion with a Social Security authority. The individual will need to communicate about changes in life situations and circumstances that may alter the payments he or she receives in another country.

Retirement and Delayed Payments

If the person in retirement that lives in another country does not have the proper setup for Social Security payments, he or she may experience delays or a total stoppage of income. No matter if the person is an expatriate or well into retirement, he or she may need to organize a way to receive the funds when in certain parts of the world. This is especially important for the handful of countries where Social Security is not available. In these locations, the person may need to travel to a near United States embassy to receive the money in another nation that does have an understanding.

Working in another location around the world may alter the payments with Social Security. The American expatriate must understand these matters fully and may need to become aware of treaties and how the country works with the United States in these matters. Foreign pension systems with expatriates may reduce the amount received through the Administration based on how much the person works and puts into the different nation’s accounts and programs. He or she may need to become aware of such issues and how it will affect him or her when living abroad.