freerskier

Thanks for your frankness, clarifications and research tht.

So, in essence a USC would continue to receive retirement SS but an LPRs has the conditions detailed. Of course, by the time I retire - an increasingly distant prospect - SS may have been done away with by the powers that be as an unnecessary burden on the US tax payer, but I'm being cynical.

freerskier

Here's also the specific agreement between the US and the UK - https://www.ssa.gov/international/Ag.../uk.html#part3

Pulaski

I used to think that, but although it has been mooted in recent years, it appears to be political suicide to discuss even making SS even means tested, so I think the prospects of SS being reduced or eliminated, IMO, is very low, especially as employer based pesnions are increasingly rare and people are tending to rely more on SS payments in retirement. .... Ditto the state pension in the UK.

newacct

You would need to file I-407 to explicitly abandon your LPR status to have your tax obligations end. Otherwise, it would continue forever. See Publication 519 section "Resident status abandoned":

freerskier

Yeah, know what you mean Pulaski, The gradual fine grade sand-paper erosion relative to the cost of living could proceed but legislating to remove it/them would be a shot in the political foot/feet/face etc.

freerskier

Thanks newacct - handy bit of advice, especially with the I-407 requirement.

freerskier

Just resurrecting a little bit here as there's a huge thread relating to SS payments when you retire - and, no I'm clearly not considering becoming a USC just to get SS -National Insurance paid over 30 years ago ... any use?

It appears that there's a complex calculation under the WEP rules to reduce retirement social security if you have provision abroad: https://www.ssa.gov/policy/docs/program-explainers/windfall-elimination-provision.html.
Here's also the agreement between the UK and US which I though at first glance was to ensure that if you didn't have enough SS credits in one country you could use valid ones from another participating one to top up your entitlement: US/UK SSA Agreement

I (once I pay the back NI of just a year and a half) will qualify for a UK state pension. I also have a couple of paltry Private Pensions from UK jobs that I contributed too in the UK. I currently have 10 years or 40 credits for Soc Security here in the USA and will likely have nearer 70 when I retire. So it looks like I would receive US soc security at retirement, but at a much reduced rate, whether I retire here or the UK (If a USC)

Does anyone know if PPs are also brought into the whole WEP calculation?

Many thanks.

Pulaski

I am not sure about PPs, I think some may be, but what I do know, is that you don't have to be a USC to get US SS, irrespective of whether you live in the US or not.

lansbury

My wife's private pension from the UK was taken into account as part of the WEP calculation. My understanding is all pensions derived from income on which SS payments were not made, are subject to being taken into account when WEP is calculated.

freerskier

Bum. But that’s kinda what I thought.

I think the max reduction in SS is down to 55% from what I can find on line.

freerskier

Oh. I thought if you relinquished your LPR status by permanently moving out of the US (More than 6 months) you’re also relinquishing rights to US benefits unless you fill in documentation that returning, a re-entry visa etc.

Well you’d get SS for 6 months then they’d stop it as you are no longer resident not considered a tax payer as an abandoning LPR. As a USC you’re in the net for fed benefits if you live Abroard. I thought that, from the advice earlier in the thread was a key difference in qualifying for SS through retirement: You have to be a USC.