Since in some US states the Social Security retirement money is not enough to cover 100% of the expenses of living, some American retirees are choosing to live abroad. But there are things that need to be weighed before. Like everyone, you want to make sure you understand how your Social Security benefits work in that situation. There are certain aspects that you should take into account, and we are going to tell you about them.
A lower cost of living, more affordable health care, more tranquility or a tropical climate: it all sounds very nice. You know, living on the paradisiacal beaches of Costa Rica, or in the middle of the vineyards of Portugal… The good news is that, for the most part, American citizens can continue to receive these benefits no matter where they reside. But, are there any restrictions to claim your Social Security benefits outside the USA?
Can I Use My Social Security Money Living Abroad?
According to data from the Social Security Administration for the year 2022 (the most recent available) the system disburses more than 6,100 million dollars in annual benefits to about 760,000 beneficiaries who live outside the United States, in places with significantly lower living costs compared to, for example, California, Florida or New York, or where the lifestyle more closely resembles what these retirees are looking for during their golden years.
But before sending a container with all your furniture to the airport, there are some duties and formalities that you need to perform before.
“Definitely. They can receive benefits abroad. That’s not a problem,” said Matthew Allen, co-founder and CEO of Social Security Advisors, a firm that helps clients maximize Social Security benefits, in an email sent to Money.
Although there is no time limit for a retiree with payment from the United States to be able to collect abroad, what is called a “Proof of Life Certification” must be completed, a procedure with which the retiree verifies that there is and that he is collecting the money. That is the Form SSA-7162 from the Social Security Administration.
How to Fill out the Form SSA-7162 to Collect Retirement Abroad
Form SSA-7162 is a document used by the SSA to verify the continuity of life of beneficiaries residing outside the United States who receive retirement payments or other Social Security benefits. This form, also known as “Proof of Life Certification,” is part of the process to make sure payments are made properly and to people who are actually alive.
This is especially relevant in the case of beneficiaries residing outside the United States, as the SSA needs to ensure that benefits are delivered correctly and no improper payments are made to deceased people.
The beneficiary must complete and return the SSA Form SSA-7162 back to the SSA, before the deadline that the agency itself establishes. In particular cases, when indicated, it may also be necessary for an authorized official or a legal representative to certify the information provided in the form.
You cannot receive Social Security benefits in the next countries:
- Azerbaijan.
- Belarus.
- Cuba.
- Kazakhstan.
- Kyrgyzstan.
- North Korea.
- Tajikistan.
- Turkmenistan.
- Uzbekistan.