UKadventurer7

My brother checked for me. As I said he’s a CFA. I think it was the www gov uk site. I’ve got a screenshot but I can’t seem to post them yet because I’m new to the forums. Here’s another try.

spouse of scouse

Did you read the bit that says 'assumes you'll contribute another 13 years'?

MMcD

OP:
You may have missed seeing my prior post...
A spate of others all got sent at the same time...and after I sent it and then updated it (twiice!)...I see it's on page 1 and could not even find it after my edits.
I think it may have some useful help...???

UKadventurer7

“Did you read the bit that says 'assumes you'll contribute another 13 years'?”

Yes, I did. Isn’t that we were taking about when we talked about sending contributions? I thought you could pay contributions in arrears and into the future.

MMcD

huh?
who was talking about what?
I'm talking about US social security
See POST number 9 on Page 1- in this thread

spouse of scouse

Yes, it's possible to pay a certain number of years worth of contributions that you've missed, this is a really good guide https://www.bbc.com/news/live/world-53018111 I was basing my calculations on your current 7 years plus you paying 6 years of back contributions. If the regs allow you to keep paying until your reach retirement age and you're going to do that, then your pension will of course be more. I hope you can pay Class 2 contributions, Class 3 are more expensive. The pensions guide I've linked to will hopefully help with that.

UKadventurer7

ah, yes sorry. I was replying to a national insurance question from another member. “Quick replies” aren’t such a good idea without nested threads.

Thank you. I just saw your post and I’ll read up on US social security. At the moment I know very little on how it works. Until recently, I’d assumed I’d get nothing from any country since I’ve moved around so much. Now, it seems like I might get something but I’ll have to work at it and go back to school.

sorry for the confusion.

tht

I believe there is also a way to have years of contribution count in another country where there is a treaty between the 2, but then you would only be eligible for payment from 1 not both..

https://www.ssa.gov/international/ag..._overview.html

Glasgow Girl

Google Windfall Elimination Provision, WEP. Your US pension will be reduced by 50 cents on the dollar for every $1 that you receive from the UK up to a maximum that is updated every year. For 2020 I think the maximum they can deduct is about $480 per month. So if your UK pension was $960 or less your social security would be reduced by 50% of whatever the UK pension is. If the UK pension is more than $960 then your deduction is maxed out at $480. This is a simplistic description, the devil is I the details. For example of you have more than 20 years Social Security contributions then your deduction is phased out and reaches 0 when you have 30 years contributions. If you retire early at 62 then the maximum deduction is about 2/3 of whatever that years maximum is, so about $320 for this year. All figures are monthly. If you make voluntary NI contributions to the UK then the portion of your pension that is based on the voluntary contributions is not subject to the deduction but the rest is. I believe WEP also applies to any pension derived from any worldwide earnings on which US social security was NOT deducted regardless of your citizenship, where or when you earned the pension, and whether or not you had ever resided in the USA when you made those earnings.Not at all fair, but regardless that is how it works.

tht

When you say your green card expired, did you submit a form to relinquish your status as a LPR or just leave and now the expiry date is in the past? Did you complete all the required tax filings and FBAR’s etc when you left?

MMcD

Great explanation in your post.
Yep, devil's in the details...but once in a whiule...there may be an angel, as well:

Tho not relevant to OP....I believe the US WEP SS deduction is strictly related to earned income. If you receive a Spousal Pension in the UK, (based on the earnings of an Ex ) or a Widower's Pension (again - based on their income) you're not liable for WEP payments. I think (?) I'm right about this...but laws have changed in recent years, so unsure...but worth looking into for anyone to whom this might be relevant.

UKadventurer7

no, I didn’t do anything. It just expired in 2016.

tht

you might want to do some research:

https://www.forbes.com/sites/robertw...p-green-cards/

UKadventurer7

Thanks to everybody, I’ve read all the links and honestly I don’t feel much wiser. It’s no clearer how much I’ll get. There are so many variables and the articles are full of different scenarios and conditions. Maybe I’m not cut out to do my own financial planning.

I think I need somebody to advise me specifically on my own personal situation. I imagine there are professionals who have experience in expat pensions and financial planning. Can anybody recommend one?

I realize I could do it myself but I think my plan would be crap. After my divorce, I squandered my share of our divorce settlement in just a few years. Paying somebody would hopefully give me a better outcome for my retirement. Just like we used to pay a professional CPA to do our taxes back in the USA. He’d find deductions we didn’t know about which more than paid for his fee.

MMcD

Excellent decision .... despite still feeling confused - this thread has worked for you:
You're a lot better informed now than you were when you first came here.
You'll be able to ask more relevant / insightful questions of whomever you enlist to assist you.

As for whom to choose - that question is asked here constantly - it's rarely answered.
You said earlier your brother is a retired chartered accountant in the UK.
Why not try to get a recommendation from him? At a minimum - you'll know his suggestion(s) aren't cloaked in a hidden vested interest

Good luck...