In the spirit if the penultimate song in the Passover Haggadah, here is a fresh look at some key aspects of Social Security for US expats living in Israel.

But first, if you’re new to life in Israel, check out our other helpful reads on moving abroad, cross-border finances, and tax-smart planning for expats:

What to do when you get kicked out of your US brokerage account

Can one use a US Power of Attorney in Israel, (and vice versa)?

Immigrating to Israel

A guide to retiring in Israel

Checklist for moving to Israel

A guide to investing abroad

Israel expat case studies

Social Security for expats

Financial planning for US citizens living abroad

Selling a house in Israel as a US citizen

Why US Expats should look before they leap into a Roth 401k

Compliance with reporting of foreign assets: tips for US expats to avoid stress

What expats need to know about Brokerage Accounts for non-US residents

And now let’s get into the blog!

1. Eligibility is the same as for in the US. You need forty quarters of income to be qualified. 
2. Your top 35 years of earnings, adjusted for inflation, are taken into account in determining your eventual monthly payout. If you only worked 17.5 years, the zero earning years will be factored in and you will only be eligible for half the benefit of someone who worked for 35 years or more. 
3. You do not lose your Social Security eligibility once you leave the US. 
4. You will have to continue contribute to Social Security (and accrue Social Security credits) if you are a business owner or sole proprietor in Israel. Employees based in Israel are exempt. 
5. Social Security and Israel National Insurance (Bituah Leumi), are two totally separate systems, that do not affect each other. You may in many situations pay into both. 
6. As of 2026 US immigrants to Israel are now exempt from paying Bituah Leumi for the first five years after Aliyah, if they pay continue to pay US Social Security. 
7. You may claim Social Security between ages 62 and 70. However each year you wait, you get a higher amount. This may be 76% more at age 70 than at age 62. The break even (less for longer versus more for less time) is around age 82. So life expectancy is a key factor in deciding when to claim. 
8. A lesser-earning spouse may claim the larger of their own Social Security amount, or up to half of that of their higher earning partner at the latter’s full retirement age (67 in most cases). Once one partner passes away the widow(er) is entitled to the higher of the two amounts as a survivor benefit. 
9. Non-US citizen spouses may be eligible for spousal Social Security benefits if they lived with their US citizen partner in the US for at least five years. 
10. The last two points also apply to divorcees who were married to their former spouses for at least ten years 
11. Social Security is Tax-Free for Israel residents, both in the US and in Israel, according to the US-Israel Tax Treaty. This is a key factor in determining how to maximize your Social Security earnings. 
12. For people in their mid-to-late sixties, who have been in Israel for less than ten years, the current US tax credits for seniors make it worthwhile to take early retirement distributions, instead of claiming Social Security earlier. This will allow for a higher tax-free Social Security payment later on (one has to claim by age 70). 
13. You may receive your monthly Social Security payment in shekels directly to your Israeli bank account. The exchange rate is decent. 

Social Security is an excellent savings medium, and should be looked upon as such. As a rule of thumb, look at it as you would evaluate a private equity investment. In other words, see how much you paid into the system, and divide your monthly payment into that amount to see how long it takes to break even. Everything above that is tax-free profit that continues as long as you are alive (plus survivor benefits for your lesser earning partner if he/she outlives you). 

Many of the rules are complex, so contact us to discuss eligibility and to plan a strategy when to claim. The latter should take your retirement distributions into account in order to optimize your taxes. We have highly qualified experts on call. Please reach out for a free 15-minute consultation if relevant.

Thinking About Moving to Israel?

You don’t have to make a radical, all-or-nothing decision overnight. But if the idea has been on your mind, we’re happy to chat.

Whether you’re:

• Planning retirement in Israel,
• Exploring dual-continent work,
• Or just curious what the day-to-day is like here,

…feel free to reach out. We’ve also published the following blogs you might find helpful:

• Checklist for moving to Israel
• Immigrating to Israel
• A guide to retiring in Israel

Let’s Talk!

We’re financial advisors for expats, both in the U.S. and in Israel, and can help you plan your transition wisely. Whether you’re balancing U.S. assets, managing remote income, or figuring out healthcare and retirement, we’ve helped dozens do just that.

If you are moving to Israel or another country and don’t know where to start when it comes to the financial side of things, please contact us.

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Disclaimer

Nardis Advisors LLC (“Nardis”) is a Registered Investment Advisory Firm regulated by the U.S Securities and Exchange Commission in accordance and compliance with applicable securities laws and regulations. Registration does not imply a certain level of skill or training. Nardis does not render or offer to render personalized investment advice through this medium. The information provided herein is for informational purposes only and does not constitute financial, investment or legal advice. Investment advice can only be rendered after delivery of the Firm’s disclosure statement (Form ADV Part 2) and execution of an investment advisory agreement between the client and Nardis.