Social security can be a tricky subject to navigate, especially if one is working and living overseas. So, can a US citizen working abroad still be eligible to earn Social Security credits toward retirement?
The answer lies in the US’s totalization agreements with specific countries.
Before we get started, we’ve written these blogs about moving to and living in Israel which you may enjoy.
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)?
Checklist for moving to Israel
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!
Can US expats get Social Security benefits if living overseas?
If one is working in any of the following countries, then he or she is eligible to earn work credits towards US Social Security while being employed in said foreign country:
- Italy
- Germany
- Switzerland
- Belgium
- Norway
- Canada
- The United Kingdom
- Sweden
- Spain
- France
- Portugal
- The Netherlands
- Austria
- Finland
- Ireland
- Luxembourg
- Greece
- South Korea
- Chile
- Australia
- Japan
- Denmark
- the Czech Republic
- Poland
- The Slovak Republic
- Hungary
- Brazil
- Uruguay
- Slovenia
- Iceland
Israel unfortunately is not on this list, and expats living in Israel who are self-employed must pay both Israeli National Insurance (Bituach Leumi) and the US self-employment tax.
What if I move out of the country after earning my Social Security benefits in the US?
For those who have already earned their Social Security benefits, you are in the clear! According to the US Social Security law, US citizens eligible for Social Security benefits and who live in Israel will continue to receive their benefits no matter how long they stay outside the US.
Other countries this is relevant to include:
- Austria
- Belgium
- Brazil
- Canada
- Chile
- The Czech Republic
- Finland
- France
- Germany
- Greece
- Hungary
- Iceland
- Ireland
- Italy
- Japan
- South Korea
- Luxembourg
- the Netherlands
- Norway
- Poland
- Portugal
- The Slovak Republic
- Spain
- Sweden
- Switzerland
- The United Kingdom
- Uruguay
With that in mind, perhaps don’t plan your retirement in Cuba or North Korea- these are the only countries to which the US Government has restricted sending Social Security Funds. In such a case, relocation would be necessary to receive funds. One would receive said funds upon moving to any country without restrictions.
Wealth management for US expats
We are expat financial advisors located in Israel and the US, serving expats globally.
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, or hold US or foreign assets and need help figuring out your retirement as an expat, please contact us.
Have questions about retiring in Israel? We’re having a series of webinars on this topic. We’re also publishing blogs on this subject.
JOIN the newsletter list here to stay informed.
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.
