Failing to understand this could result in unwanted benefit delays.
Retiring abroad is exciting and can save you quite a bit of money if you move somewhere with a lower cost of living. But it also creates unique challenges. You have to get used to a new set of laws, a new lifestyle, and a more complicated tax situation.
You might also wonder if the move will affect your ability to receive Social Security benefits. The truth is, it probably won’t, but it depends on where you plan to retire.
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In most countries, it’s business as usual
Retiring abroad generally isn’t a barrier to receiving your Social Security benefits as scheduled. You’ll get paid on either the second, third, or fourth Wednesday of the month, depending on your birthday.
The Social Security Administration (SSA) generally directly deposits the money into a bank account in your name. You can set this up yourself through your my Social Security account, so you don’t have to call the SSA or make an in-person appointment.
There are a few countries where you may not receive benefits
There are a handful of countries to which the U.S. will not send Social Security benefits. Fortunately, this isn’t an issue for most people, as these countries aren’t exactly retirement hotspots.
The only two countries the U.S. absolutely refuses to send checks to are Cuba and North Korea. If you’re a U.S. citizen who moves to one of these places in retirement, you won’t get any benefits during the time that you live there.
However, you may be eligible to receive all the withheld benefits in a lump sum if you later move back to the U.S. or move to another country where the U.S. will send Social Security checks. Non-citizens eligible for Social Security can’t receive back pay for months lived in Cuba or North Korea.
Seniors planning to retire in the following countries may also face challenges receiving their Social Security benefits:
- Azerbaijan
- Belarus
- Kazakhstan
- Kyrgyzstan
- Tajikistan
- Turkmenistan
- Uzbekistan
You may be able to get Social Security in one of these places, but you must talk to the SSA about an exception. Generally, you have to agree to restricted payment terms.
If you don’t qualify for an exception, you won’t be able to receive benefits while living in one of the above countries. However, just as with residents of Cuba and North Korea, if you later move back to the U.S. or to another country the SSA sends Social Security checks to, you’ll be eligible for back benefits, provided you’re a U.S. citizen.
If you have any questions about how your move could affect your Social Security checks, reach out to the SSA for clarification. This shouldn’t take long and can help you avoid unexpected benefit delays when you arrive in your new country.