A surprising number of Americans decide to retire abroad to take advantage of a lower cost of living and a change of scenery and culture. But for those interested in taking the plunge, there are rules to consider when it comes to collecting Social Security benefits.
The Motley Fool cautions that while you still can collect Social Security while living overseas, you must choose a country that has a treaty in place with the United States to avoid any double taxation issues.
According to the Social Security Administration (SSA), as of December 2021, benefits were paid to 695,086 Americans living in foreign countries, including 443,546 who are retired. These payouts amount to $386 million a month!
The SSA report shows these countries have the most expatriates: Canada, 71,376; Japan, 53,909, and Mexico, 32,957. There are 25 countries that have “totalization agreements” that coordinate Social Security benefits and national health insurance programs.
If you’re considering living out your retirement in a foreign country, it’s wise to contact the SSA and make sure you understand the rules that may apply to your situation. It’s no surprise that the agency will not send benefits to North Korea or Cuba.
Council of Seniors Wants Retirement to be Easier
Extra retirement income will help you decide where to settle. That’s one reason why here at Council of Seniors, we urging Congress to pass The SAVE Benefits Act. You need this bill to make up for inadequate Social Security cost-of-living adjustments (COLAs) that shortchanged seniors over a series of years. If it passes, seniors will be reimbursed the $581 that’s been missing from benefits.
Please sign our petition and tell others to help too! Let’s show Washington politicians how many Americans urgently support this bill.
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