Editha

Yes that is a lot better than the UK pension. What is the contribution rate?

dunroving

My general understanding of US Social Security is that, like UK NI, you pay more if you earn more.

Unlike UK NI, your US social security in retirement (equivalent of "state pension") is higher if you have paid in more, all other things being equal.

Editha

That sounds like the Canada pension.

The figure you quoted seems near the maximum amount of US Social Security. Presumably most people get less.

Giantaxe

My projected US SS is over twice what the maximum UK pension currently is. That's based on 30+ years of contributions, most at the maximum income level for SS contributions.

dunroving

My US SS (based on only 9 years' contributions) would be somewhat similar to my UK state pension (based on 29 years). But having only 9 years of US SS, I get WEP'ed, reducing my US "state pension" by about 40%.

cityboys1911

after reading the posts about social security here in the US it sucks,i worked for over 10 years and then retired at 69 and applied for SS and because I was honest and told them I get a UK pension they reduced my SS payments almost 90% so now I get basically nothing from them and I have to pay Medicare so yes it SUCKS as far as I am concerned, so did I do wrong in telling them about my UK pension I THINK SO but then you take a chance of not getting caught

dunroving

This seems like a mistake - there is no way it should be reduced by this much. There have been dozens of posts on here about the limits on how much you can be WEP'ed. It is impossible for it to be more than 50%, IIRC.

cityboys1911

my original payment was 700 dollars it is now 184 dollars as they take 104 dollars for medicare tell me if that is right I have gone back to work part time as we cannot afford to live on those amounts

dunroving

There is an online calculator so you can check for yourself:

Calculators: Online Calculator (WEP Version)

Giantaxe

I don't think a 90% reduction because of the WEP is possible. For those with less than 20 years of SS contributions, the most it can be reduced is the least of 55.6% of SS, $408 a month, and 50% of your UK pension.

This link's table is a year out of date but otherwise correct:

Social Security’s Windfall Elimination Provision: How to Quickly Calculate Your Penalty | The SS Choices Blog

Maybe your 90% figure is after Medicare premiums are deducted from it?

dunroving

I thought the same, but $184 is 27% of $700, so even that would only be a 73% reduction.

Still, WEP isn't right in situations like this, and it probably feels like a 90% reduction, even if it isn't that much.

Giantaxe

Right, the WEP is completely unfair, but it is not responsible for all of his 73% reduction.

dunroving

Agreed, it is really a 59% reduction (because Medicare has nothing to do with WEP) but I didn't want to rub salt in the wound by pointing it out to the poster.

Actually 59% is closer to the 55.6% maximum you mentioned.

dunroving

[ETA that it is also yet another example of the pitfalls of retiring in the US - and the benefits of having the NHS in old age]

Giantaxe

His SS is probably not exactly $700. I'm betting that his SS is reduced by that 55.6% figure.