What Happens to Social Security If You Live Abroad Part of the Year?

Dreaming of a retirement overseas? You might wonder whether Social Security benefits will follow you past the borders of the United States.

Fortunately, the answer generally is "yes." However, there are a couple of wrinkles you should know about that might complicate your retirement plan.

Can you collect Social Security while living abroad?

You can receive Social Security benefits in nearly every nation on earth.

The Social Security Administration (SSA) can deposit your payment to either a U.S. bank or a financial institution in your new home country that has an international direct deposit agreement.

However, benefits generally cannot be sent to beneficiaries living in North Korea or Cuba. Payments will not follow anyone who is adventurous enough to retire in those nations.

If you're a U.S. citizen and you move from those nations to another country, the SSA will send all the payments it previously withheld.

Who can receive Social Security abroad?

The SSA website features a Payments Abroad Screening Tool that explains how Social Security works country by country.

By using this tool, you can learn whether your payments will go on indefinitely or whether they will stop after six months.

The six-month rule applies to noncitizens who receive benefits while living outside the U.S. There are exceptions to this rule, but in most cases noncitizens need to return to the U.S. and be "physically and lawfully present in the United States for a full calendar month" to get their benefits, according to the SSA.

Other rules to know before retiring abroad

Although you generally can access Social Security benefits from almost anywhere on earth, there are a pair of other wrinkles that could slightly complicate your retirement plans.

By learning more about these complications, you can find workarounds that will keep your retirement moving full steam ahead.

Medicare does not work abroad

In almost every case, your Medicare coverage will not work abroad. There are some exceptions for some types of emergency care, but in general, you are on your own.

So, if you plan to spend all of your retirement in another country, you need to find alternative medical coverage.

If you are only going to spend part of the year abroad, you must find coverage for those periods. Whatever you decide, don't stop paying your Part B premiums while overseas.

If you do, you will have to re-enroll in Medicare when you return to the U.S., and you will likely face late-enrollment penalties that will last for the rest of your life.

You must respond to the Foreign Enforcement Questionnaire

If you retire abroad, the SSA will periodically send you a Foreign Enforcement Questionnaire, which is Form SSA-7162. The agency does this to confirm that you are still eligible to receive benefits.

When you get this form, return it right away. If you don't return it within 60 days, the SSA will suspend your benefits.

Also, make sure to keep your address updated with SSA so the agency will know where to send the form.

Will you pay taxes on Social Security abroad?

Wherever you decide to retire, Uncle Sam's long arms will still stretch far enough to dip into your pockets and collect taxes.

The IRS taxes income regardless of where you live. In addition, some foreign countries add their own tax on top of that, although in many cases foreign tax credits can offset these fees.

Up to 85% of your Social Security benefits may be subject to federal income tax. Exactly how much you pay in taxes depends on what is known as your combined income. This includes:

• Adjusted gross income
• Tax-exempt interest income
• One-half of annual Social Security benefits

In 2026, you will begin to pay taxes on Social Security benefits once your income exceeds $25,000 for an individual or $32,000 for couples filing jointly.

Choosing the right time to apply for Social Security

Of course, the biggest decision you will make about Social Security is when to file for benefits.

Most people become eligible for Social Security at the age of 62. However, if you file for benefits at this age, your monthly payment will be permanently reduced compared to filing later in retirement.

If you were born in 1960 or later and you claim at 62, your benefit will be reduced by 30% compared to claiming at your full retirement age, which is 67 for people in this cohort.

On the other hand, for every year you delay filing between 67 and 70, your benefit will increase by 8%. There is no additional benefit to waiting beyond age 70.

So, when you file for benefits plays a huge role in how much money you get from Social Security each month. If you are unsure of the best time to claim, consult with a financial advisor.

Bottom line

Millions of Americans dream of retiring abroad. If you plan things well and follow the rules, you should be able to stretch your retirement dollars further.

However, the wrong moves can make Medicare more expensive or potentially cut off access to Social Security benefits. Make sure you carefully map out any plans to retire abroad for all or part of your retirement.