Collecting Social Security While Living Abroad

Introduction

US citizens can receive Social Security retirement, disability, and survivor benefits in most countries worldwide. Payments can be direct-deposited to US bank accounts or, in many countries, to local bank accounts. However, some countries have restrictions, and non-citizens face additional limitations.

Per the Social Security Administration, approximately 700,000 beneficiaries live outside the United States.

Where Benefits Can Be Sent

Countries With No Restrictions (US Citizens)

US citizens can receive benefits in virtually all countries except:

• Cuba
• North Korea

• Cuba, North Korea (as above)

Additional Restrictions for Non-Citizens

Non-US citizens face restrictions in more countries:

• Cambodia
• Vietnam
• Areas not under effective government control

• Azerbaijan, Belarus, Cuba, Kazakhstan, Kyrgyzstan, Moldova, North Korea, Tajikistan, Turkmenistan, Ukraine (certain areas), Uzbekistan

For current list: [SSA's Payment Abroad Screening Tool](https://www.ssa.gov/international/payments_outsideUS.html)

How to Receive Payments Abroad

Direct Deposit to US Bank

• Simplest method
• No currency conversion at SSA's rate
• Reliable transfer

• Need to maintain US bank account
• Then transfer to local account yourself
• You control exchange rate timing

International Direct Deposit

Available in 70+ countries with participating banks:

• Enroll through SSA
• Provide local bank details
• Payments sent in local currency

• Most of Europe
• Canada, Mexico
• Australia, New Zealand
• Japan, South Korea
• Many others

• SSA exchange rate may not be optimal
• Delays possible
• Not available in all countries

Check Payments

• Mailed to foreign address
• Long delivery times
• Risk of loss
• Banking a US check abroad is difficult/expensive

Tax Implications

US Federal Taxes

• Up to 50% taxable if income $25,000-$34,000 (single)
• Up to 85% taxable if income over $34,000 (single)
• Married filing jointly: different thresholds

• FEIE doesn't apply to Social Security
• Social Security is not "earned income"
• Tax treaties may affect taxation

Foreign Taxes

• Canada: Generally only taxed by country of residence
• Germany: Generally only taxed by US
• UK: Taxable by both, with credits

Check specific treaty provisions for your country.

State Taxes

• Some states tax Social Security (13 states as of 2025)
• Others don't (37 states)
• Establish residency in no-income-tax state before leaving

Medicare Considerations

Medicare Does Not Work Abroad

Critical point: Medicare generally doesn't cover care outside the US.

• Emergency care in Canada (some circumstances)
• On ship within 6 hours of US port
• Qualified Canadian/Mexican hospitals closest to US emergency

• Need alternative health coverage abroad
• International health insurance
• Local country healthcare system

Keeping Medicare

• Can maintain Part A while abroad
• Premium-free if you have 40 quarters
• Won't pay for foreign care

• Monthly premium ($174.70/month in 2025)
• Can drop and re-enroll later
• Late enrollment penalty may apply
• Consider dropping if abroad long-term

• Can't use abroad
• Late enrollment penalty if re-enrolling
• Evaluate based on return plans

Continuing Eligibility

Proof of Life

SSA must verify you're alive to continue payments:

• US Embassy/Consulate certification
• Return mail questionnaire
• Some countries have automated verification

Reporting Requirements

• Address changes
• Change in marital status
• Change in citizenship
• Work activity (if receiving early benefits)

Working While Receiving Benefits

• Earnings limit applies ($22,320 in 2025)
• $1 reduction for each $2 over limit
• Foreign earnings count

• No earnings limit
• Work as much as you want

Applying for Benefits from Abroad

Through US Embassy/Consulate

• Federal Benefits Unit handles SS applications
• Schedule appointment
• Bring documentation (birth certificate, marriage certificate if applicable, DD-214 for military)

Online

• Create my Social Security account
• Apply at ssa.gov/benefits
• Some limitations for non-US addresses

Timeline

• Apply 3 months before you want benefits to start
• First payment typically arrives 1-2 months after approval

Special Situations

Returning to the US

• Inform SSA of address change
• Update direct deposit to US bank if needed
• Medicare coverage resumes when back in US

Divorce

• Ex-spouse may be eligible for benefits on your record
• Must have been married 10+ years
• Doesn't reduce your benefit

Death Abroad

• Survivor benefits available to eligible family
• Report death to SSA through Embassy/Consulate
• Lump-sum death benefit ($255) may apply

Key Takeaways

• US citizens can receive Social Security in most countries (except Cuba, North Korea)
• Direct deposit to US bank often simplest method
• International Direct Deposit available in 70+ countries
• Medicare doesn't cover care abroad—need alternative coverage
• Social Security is taxable income (FEIE doesn't apply)
• Must maintain contact with SSA and respond to proof-of-life requests

Next Steps

1. Check your destination country for any restrictions
2. Decide on payment method (US bank vs international direct deposit)
3. Set up my Social Security account online
4. Plan healthcare coverage (Medicare doesn't work abroad)
5. Understand tax treaty implications for your destination
6. Contact SSA or Embassy well before your move date