Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Help with UK State pension AND USA social security

Help with UK State pension AND USA social security

Old Oct 22nd 2017, 6:18 pm
  #1  
Just Joined
Thread Starter
 
Joined: Oct 2017
Posts: 1
Honeywing is an unknown quantity at this point
Default Help with UK State pension AND USA social security

Hello.

I wonder if someone could help me and my parents. My mother was a dual citizen but lived in the UK for most of her life until 2001 when we moved to the USA. My mum is 70 yrs old in January and hoping to retire. They received the uk Nic pension and have been told by the US social security that they class this as a private pension and that this will be deducted from their Social security in the USA. My mum and dad both worked in the uk for about 25 yrs and havE worked for 15 in the USA. Can you please explain to me why they would loose their social security in the USA. This could mean that they won’t be able retire and I’m very worried about them.
Honeywing is offline  
Old Oct 22nd 2017, 6:53 pm
  #2  
Forum Regular
 
Joined: Jan 2016
Location: Cambridge, MA
Posts: 162
Mercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond reputeMercury39 has a reputation beyond repute
Default Re: Help with UK State pension AND USA social security

It is possible this is due to the Windfall Elimination Provision
Mercury39 is offline  
Old Oct 23rd 2017, 2:23 am
  #3  
Lost in BE Cyberspace
 
Joined: Jan 2006
Location: San Francisco
Posts: 10,157
Giantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond repute
Default Re: Help with UK State pension AND USA social security

Originally Posted by Mercury39 View Post
It is possible this is due to the Windfall Elimination Provision
Yes, and the OP should do a search for that on here. Pretty endless discussion of it over the years.

Maximum WEP deduction is half of non-SS pensions up to a maximum as shown in the link below. But, as the OP's mother has delayed taking SS until age 70, the maximum deduction is actually higher than in the table:

https://www.ssa.gov/planners/retire/wep-chart.html

You can certainly think of some "worst case scenarios" that would cause SS to be largely wiped out, but with a 15 year contribution record, income in those years would have to be pretty low for that to be the case.
Giantaxe is offline  
Old Oct 23rd 2017, 3:28 am
  #4  
Lt Col (Retd)
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 47,697
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Help with UK State pension AND USA social security

Take a look at this thread, especially the last 20-30 pages, because a lot of the discussion concerns WEP and how it is calculated.

Those of us who know about it ahead of time can plan for it, and adjust, if necessary by saving more, or buying additional years of NI contributions when working outside the UK, but this may be a very bitter pill if your parents were unaware of WEP prior to their plans to retire imminently.
Pulaski is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.