America’s Social Security is a powerful and beloved essential support network for many retirees, disabled people, and their families, and it is precisely those populations who are most grateful for its existence. However, when one decides to live abroad, questions arise about the continuity of these benefits.
Thousands of Americans have become expats and have moved abroad in search of a quieter life away from the big North American cities, and for their Social Security benefits to yield much more. But you have to be careful when moving abroad and becoming an expatriate retiree, because not all countries are accepted as settlement destinations by the Social Security Administration.
The good news is that you can receive your Social Security benefits in most countries in the world. Countries such as Canada, Costa Rica, Mexico, Portugal, Spain, and many others in Europe, Asia, and Latin America allow Social Security beneficiaries to continue receiving their payments without interruption. In fact, the Social Security Administration (SSA) has established international agreements with numerous countries to ensure the smooth transfer of these benefits. However, there are some exceptions and important considerations.
Exceptions
- Cuba and North Korea: Due to economic sanctions, payments cannot be made to people residing in these countries.
- Other countries with sanctions: There are other sanctions from the US Treasury Department that could affect payments in certain countries.
Countries with Partial Restrictions:
- Azerbaijan
- Belarus
- Kazakhstan
- Kyrgyzstan
- Moldova
- Tajikistan
- Turkmenistan
- Ukraine
- Uzbekistan
Restrictions That Can Be a Problem for the SSA
Consider major factors that may restrict eligibility when collecting Social Security benefits abroad. For example, if you are not a US citizen, the rules may vary. They can also affect Social Security agreements with many countries that impact the amount of benefits you receive and how they are calculated, and whether they are received in dollars or local currency.
Whenever you make a change of residence from the United States to another country, or from that country to a third party, you must notify Social Security. In any case, that is something you should do whenever you change your address, even within the United States, but outside our borders it is even more important.
There is no specific time limit on how long you can live abroad and still receive your Social Security benefits. As long as you inform the SSA of your change of residence and your foreign address is up-to-date, your payments should continue as normal. It is crucial to maintain constant communication with the SSA and ensure you comply with any additional requirements they may have.
What Happens When You Move to a Forbidden Country
If you decide to move to one of these countries, the SSA will suspend your Social Security benefits. You will not receive payments while you remain in a prohibited country. However, in most cases, your benefits will not be permanently lost. If you decide to move back to a country where receiving payments is allowed, your benefits will be reinstated and you will receive any back payments you were owed.
Before you decide to move abroad, do extensive research and check with the SSA to make sure your destination will not interfere with receiving your Social Security benefits. Keep your contact information up to date and communicate any change of residence immediately.
Also take into account whether your foreign profits will be taxed locally and how the IRS takes your profits to calculate the taxes you owe. As long as you are a US citizen, even if you live abroad, you must pay certain federal taxes.
