I was born in the UK in '55 ....
So was I
I was born in the UK in '55 ....
So was I
You can qualify for a social security pension from two (or more) countries if you have the required number of contributions. The obvious way to get them is to work in both countries. Say you work for 20 years in the UK and then for 20 years in the US, you'd get a pension from both countries, but it would be less than full benefit because of your less than complete work record.
However, if you are able to make voluntary payments into a social security system while you are working in another country you can get full pensions from two countries.
For example, consider a UK citizen who moves to work in the US at age 25. The UK allows them to make voluntary UK National Insurance contributions and they must obviously also pay FICA. If they work until age 55 they will have 30 years of payments into both the US and UK systems and will qualify for full benefits from both.
[-]A social security pension from another country will not affect the one you receive in the US unless there is a treaty to that effect in place.[/-] NevermindCorrect me if I'm wrong, but I thought I heard somewhere that if you work for an employer who does not withhold Social Security taxes from your salary, such as an employer in another country, the pension you get based on that work may reduce your Social Security benefits.
Correct me if I'm wrong, but I thought I heard somewhere that if you work for an employer who does not withhold Social Security taxes from your salary, such as an employer in another country, the pension you get based on that work may reduce your Social Security benefits.
As Nun says, you get SS based on your contributions.
Having worked and made some contributions into both the UK and US SS systems I am entitled to a reduced SS in both countries. I only contributed for 23 years into the US system and the amount you get is based on 35 years, so I have 12 years with zero FICA payments. (I had a 7 year period where I paid into both systems).
Correct me if I'm wrong, but I thought I heard somewhere that if you work for an employer who does not withhold Social Security taxes from your salary, such as an employer in another country, the pension you get based on that work may reduce your Social Security benefits.
I have friends that are collecting US SS and pensions in other countries and their SS is not offset by WEP. This seems to mean they are not reporting their foreign pensions.
Thanks for this info. I just read the SS pub on WEP and learned something new. A bit of a bummer for folks that have a small foreign pension and now a reduced SS as well.That might be the case. You must report any pensions due to non-SS wages to the SSA so they can see if WEP is required. However, your friends will be entitled to full SS even with pensions derived from non-SS wages if they have at least 30 years of SS payments. Of course US citizens and US residents must enter foreign pensions on their 1040.
Thanks for this info. I just read the SS pub on WEP and learned something new. A bit of a bummer for folks that have a small foreign pension and now a reduced SS as well.
Thanks. I found a chart (here) and calculator (here) at the SSA website. This is one of those few moments when not having a company pension and having a small SS payment isn't all that bad.The amount of WEP is in part based on the size of your non-SS pension. It's done so that the calculation of your SS is adjusted to account for the smaller number of SS contributions rather than erroneously using your lower than appropriate average contribution amounts. The current maximum amount of WEP is $386/month.
A friend of mine, until very recently had dual US and Canadian citizenship. He has lived in Canada for a long time, married, etc.
He recently went through the process of renouncing his US citizenship for tax reasons. He tells me that this is not an unusual occourance. The room at the US embassy where those who were renouncing was apparently SRO. He would have preferred to keep his dual citizenship but just did not want to file and pay the tax.
That might be the case. You must report any pensions due to non-SS wages to the SSA so they can see if WEP is required. However, your friends will be entitled to full SS even with pensions derived from non-SS wages if they have at least 30 years of SS payments. Of course US citizens and US residents must enter foreign pensions on their 1040.
Thanks for this info. I just read the SS pub on WEP and learned something new. A bit of a bummer for folks that have a small foreign pension and now a reduced SS as well.
I am British and the whole world would have to be falling over on this side of the pond for me to even remotely consider the UK as a retirement spot. I would rather go to China. Perhaps when the Hell Freezes over and the Devil learns to Ice skate. . All I miss is the Beer!
A spouse of an SS recipient (US, or other country version, and resident in the US or another country) may also be entitled to reduced SS payments (from the US or the other country) even if they never worked or lived in whichever particular country, and is based on the payments due the husband/wife.
+1 (Apart from the warm beer, that is).I am British and the whole world would have to be falling over on this side of the pond for me to even remotely consider the UK as a retirement spot. I would rather go to China. Perhaps when the Hell Freezes over and the Devil learns to Ice skate. . All I miss is the Beer!
+1 (Apart from the warm beer, that is).
Having been born in England, and having lived there until my teens, I presume I have dual UK/Canadian citizenship..........however, I travel on a Canadian passport, (I am a Canadian), and cannot envision a situation wherein I'd attempt/want to claim UK citizenship.
(I also, in my late teens-early twenties, was eligible to apply for Australian citizenship......but that boat has sailed.....not that I wish I had boarded it.)
For me it is/was a combination of both, and with the weighting of both tilted in favor of Canada..........I came to Canada from Australia in 1965, stayed a year, traveled around the US & Mexico and returned to Australia, where I spent 3 weeks before deciding that Canada was where I 'fit'.It's interesting how much where you retire is decided by practicalities and how much by sentiment.
We're very sorry to hear of your reluctance to return to the UK. You will be missed. The great British art of whinging has undoubtedly suffered greatly since your departure. (but the art of taking the pi** still flourishes)I am British and the whole world would have to be falling over on this side of the pond for me to even remotely consider the UK as a retirement spot. I would rather go to China. Perhaps when the Hell Freezes over and the Devil learns to Ice skate. . All I miss is the Beer!