Can a U.S. Citizen live in abroad collect Social Security benefit?
Can a U.S. Citizen live in abroad collect Social Security benefit?
Generally, an eligible U.S. citizen (retired or senior citizen) can collect their social security benefits while living abroad in most countries. However, that foreign country must meet the exception requirements per U.S. Law of title 20 CFR §404.463, whether that country has a social insurance system that pays benefits to U.S. citizens over there. Social security payments are generally sent via direct deposit to U.S. or certain foreign banks. However, restrictions apply to specific countries such as North Korea, Cuba, and U.S. citizen beneficiary (recipients) must monitor their eligibility status via the SSA’s payments abroad screening tool through ssa.gov.
Information of Social Security Retirement benefit
The minimum age to claim Social Security retirement benefits is 62. While early benefits are available at 62, they are permanently reduced by up to 30%, while full benefits are available at “full retirement age” (67 for those born in 1960 or later). Benefits increase for every year delayed up to age 70.
Minimum Age: 62 for retired workers (must have 10 years of work history).
Survivor Benefits: As early as age 60 (or 50 if disabled).
Full Retirement Age (FRA): Currently 67 for those born in 1960 or later.
Maximum Benefit Age: 70 (no additional benefit increase after this age).
According to social security administration, claiming before the FRA will results in a lower monthly payment, while waiting until age 70 maximizes the monthly benefit.
Payments Outside the United States
As a United States citizen, the beneficiary may receive their social security payments outside the United States in this country as long as they are eligible for that foreign country.
Important Factors When Living Abroad
Eligibility & Reporting —> The beneficiary (eligible U.S. citizen or non-U.S. citizen) must have earned at least 40 credits (approx. 10 years of work) and report changes in address, marriage, or work to the SSA
Restricted Countries —> Payments cannot be sent to residents of North Korea and Cuba
Totalization Agreements —> U.S. has agreements with about 25+ countries to avoid double taxation and help with eligibility
Non-Citizens —> Green card holders may face stricter rules, often requiring them to return to the U.S. every 6 months to maintain benefits. Under 20 CFR §404.460(c), payments may continue if the non-citizen is a resident of a country with which the U.S. has a totalization agreement, which coordinates benefits.
Taxation—> All recipients are still responsible for taxes on Social Security benefits while abroad
What are Totalization Agreements?
The United States has Social Security Agreements, referred to as Totalization Agreements with multiple countries. The Totalization Agreements prevent dual social security taxation on earnings. This situation happens when a worker from one country works in another country and is required to pay social security taxes toward both countries’ social security systems. In addition, the Totalization Agreements help fill gaps in benefit coverage for workers who divide their careers between the United States and the Agreement country.
For non-U.S. citizens
Non-U.S. citizens can claim social security benefits while living abroad if they earned enough credits (usually 40 credits) and are citizens of foreign countries with which the U.S. has a totalization agreement. However, they must meet the specific, stricter requirements such as having lived in the U.S. for at least 5 years and potentially returning every 6 months, and the foreign country must also meet the exception requirements per U.S. Law of title 20 CFR §404.460 and 404.463 showing that country has a social insurance system that pays benefits to the eligible recipients.
Citations: Title 20 CFR §404.460; 20 CFR §404.463
Note: This article is intended for educational purpose only, and it does not constitute as a legal guidance and the U.S. Laws and Regulation.
