Social Security is a pillar of retirement income for millions of Americans—depending on what report or study you consider, some 70% of recipients rely on these payments to cover their living expenses and for around 28% of retirees it’s their sole source of income.
Headlines regularly declare the system is in crisis and running out of cash. In fact, they’ve been saying that for some 40 years now…
Fearmongering aside, here’s what the Social Security Administration (SSA) say on the matter: “As a result of changes to Social Security enacted in 1983, benefits are now expected to be payable in full on a timely basis until 2037, when the trust fund reserves are projected to become exhausted. At the point where the reserves are used up, continuing taxes are expected to be enough to pay 76 percent of scheduled benefits. Thus, the Congress will need to make changes to the scheduled benefits and revenue sources for the program in the future.”
So, for the next decade or so, you’re all set… after that there may be a reduction in benefits but more likely Congress will make the required changes to shore up the program.
The 2026 Cost Of Living Adjustment (COLA) came in at 2.5% adding roughly $50 a month to the average retired worker’s check which is now around $2,071—that money might not go a long way in much of the U.S. these days but in some spots abroad it can see you living like royalty.
Little surprise then that one of the questions we’re most frequently asked here at Live And Invest Overseas is: “Can I claim Social Security abroad?”
The good news is, in short and in general, yes, you can receive your Social Security payments outside the U.S. for as long as you are eligible for them, in most other countries (indeed, as SSA figures show, some 760,000 Social Security recipients currently do just that)—though there are some exceptions…
For example, Cuba and North Korea—the U.S. Department of the Treasury prohibits making payments to residents of both countries. Plus, Social Security payments generally cannot be made to expats in Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. In some cases, exceptions can be made.
If you do not meet the requirements to qualify you for an exception in those countries, the SSA will withhold your payments until you leave the restricted locale and go to one to where payments can be made.
In general, to be eligible to receive Social Security benefits, you must be aged 62 or above and have paid into the program for at least 10 years. Your monthly Social Security benefit amount is based on your highest 35 years of earnings. Depending on the situation, dependents may be eligible.
To be determined as living outside the U.S. per the SSA, you need to have been outside the U.S, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, the Northern Mariana Islands, or American Samoa for at least 30 consecutive days. If you return to the U.S. and stay for more than 30 days in a row then you are no longer considered to be living abroad.
Most Social Security recipients living overseas receive their benefits electronically to a U.S. bank or financial institution in a country with a direct-deposit agreement with the U.S.
If you opt to use a bank outside the U.S., you may be charged fees on international transactions.
Alternatively, you can opt to have your payment deposited in your U.S. account and then choose when to move it overseas based on exchange rates, wire transfer costs, and how much you require.
It is also possible to receive your Social Security check by mail but bear in mind the process will take longer than electronic transfer and that not all countries have a reliable postal service so should your check get lost or stolen getting a replacement will take time.
As an overseas recipient of Social Security payments you will be sent a questionnaire every year or so. This will ask you to confirm that you are still eligible for benefits. Be sure to complete this as failure to do so could mean the SSA halt your payments. It’s also important that your keep the SSA informed of any change of address to ensure you receive this questionnaire.
As a U.S. citizen or Green Card holder, you are subject to U.S. income tax laws no matter where you live. This means that your income—including up to 85% of your Social Security benefits—may be subject to federal income tax. Plus, many foreign governments tax U.S. Social Security benefits, so it’s important to carefully consider your tax obligations before making your move.
The Social Security Administration’s Payments Abroad Screening Tool (available on their website) will help you determine if you can collect your benefits in your chosen overseas destination.
Until next time,
Kathleen Peddicord
Founding Publisher, Overseas Opportunity Letter
