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UK state pension and USA social security

UK state pension and USA social security

Old Sep 13th 2017, 1:00 am
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Default Re: UK state pension and USA social security

Originally Posted by Disenchanted View Post
Depends on your situation. Will you still be working or will you be retiring, do you need your pensions now? Usually the financial advice is to take your US SS pension as soon as possible, if you are still working that would be at full retirement age as before that your pension is reduced $1 for every $2 you earn.

If you receive any pension from earnings not subject to US SS withholding it will trigger WEP on your US SS, although I'm not sure about your UK gov works pension, I don't see any reason why it would be any different.

If you defer your UK pension(s) your US SS will not be reduced by WEP until you such time as you start taking any of you UK pensions.

If you will still be working, and your UK pension(s) are in deferral, you can collect all of your US SS pension without WEP. I currently do this, but when I retire and collect my other pensions my US SS will be reduced by $400.
I am self-employed & intend to retire at 66 when I reach US SS age. I have been eligible for my UK gov works pension since turning 60, but applied for it late as I was deployed in the Middle East, so did not do so till I got back home to the US. This is declared & taxed on my US tax returns & is paid into my UK bank account, albeit I do not access it due to the lower value of the GB pound against the $. Such a $ loss to transfer it to the US at present.

I assume that even if I defer the UK state pension until later, WEP will apply due to my UK gov works pension as this will be taken into consideration by the US SS system. Is that correct or do I have that wrong?
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Old Sep 13th 2017, 2:16 am
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Default Re: UK state pension and USA social security

Your UK gov works pension will be taken into consideration when WEP is calculated.
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Old Sep 13th 2017, 2:49 am
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Default Re: UK state pension and USA social security

Originally Posted by lansbury View Post
Your UK gov works pension will be taken into consideration when WEP is calculated.
Lansbury

Many thanks for the swift response and sadly I may have to rethink taking the US SS at 66, just so they do not reduce it too soon. Just defer it a few years, but still retire at 66 with a little less $ for a while. Had enough of the Middle East debacle, time soon to chill out.

With all the volume of your posts, maybe you deserve a little time off yourself!! Take care.

Kind regards,
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Old Sep 13th 2017, 2:22 pm
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Default Re: UK state pension and USA social security

Wondering if you can suspend your Gov Works pension. If so, then ask the question of the SS administration if that will then allow you to receive full US SS pension if you also defer your UK OAP?

If not then crunch the numbers, which pension will give you the most annually when deferred. UK grows at 5.8% and US grows at 8%.

One other point I'm not sure about, I know that if your SS Pension has WEP applied then your annual COLA on that pension is on the reduced amount and not the original amount you were entitled to. In the case of you deferring your US SS pension but receiving a UK pension I don't know if the 8% annual increase is on the full amount or the WEP'ed amount. I'm sure someone here may know the answer to that question, but it may be worth asking the SS administration.
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Old Sep 13th 2017, 10:58 pm
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Default Re: UK state pension and USA social security

Originally Posted by Disenchanted View Post
Wondering if you can suspend your Gov Works pension. If so, then ask the question of the SS administration if that will then allow you to receive full US SS pension if you also defer your UK OAP?

If not then crunch the numbers, which pension will give you the most annually when deferred. UK grows at 5.8% and US grows at 8%.

One other point I'm not sure about, I know that if your SS Pension has WEP applied then your annual COLA on that pension is on the reduced amount and not the original amount you were entitled to. In the case of you deferring your US SS pension but receiving a UK pension I don't know if the 8% annual increase is on the full amount or the WEP'ed amount. I'm sure someone here may know the answer to that question, but it may be worth asking the SS administration.
Unfortunately I need the UK Gov works pension to survive. I assume having UK Gov works pension as I do now & claiming the UK state pension next year at 66, but delaying the US SS till 70, will negate WEP until the US SS starts.
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Old Sep 14th 2017, 1:09 am
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Default Re: UK state pension and USA social security

Originally Posted by ferdy555 View Post
Unfortunately I need the UK Gov works pension to survive. I assume having UK Gov works pension as I do now & claiming the UK state pension next year at 66, but delaying the US SS till 70, will negate WEP until the US SS starts.
If you are in receipt of pensions from the UK, WEP will be calculated and applied to your SS when you claim that.
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Old Sep 24th 2017, 11:29 pm
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Default Re: UK state pension and USA social security

Hi,
Looking for some clarity please?
I now live permanently in the US and am 62. I will qualify for a full UK SS pension when I decide to and know it can be paid direct to my US bank account and will need to be declared as income.
I have never worked in the US, but my wife does and will qualify for, hopefully, the full amount of US social security. The question is, will I also qualify for US SS as a spouse? If I do, at what age can I claim it, or do I have to wait till my wife reaches retirement age?
Advice welcome
Many thanks
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Old Sep 25th 2017, 7:03 am
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Default Re: UK state pension and USA social security

Originally Posted by Phoenixsuns View Post
Hi,
Looking for some clarity please?
I now live permanently in the US and am 62. I will qualify for a full UK SS pension when I decide to and know it can be paid direct to my US bank account and will need to be declared as income.
I have never worked in the US, but my wife does and will qualify for, hopefully, the full amount of US social security. The question is, will I also qualify for US SS as a spouse? If I do, at what age can I claim it, or do I have to wait till my wife reaches retirement age?
Advice welcome
Many thanks
I claim my SS via my spouse having never worked in the USA. You will receive 50% of her SS payment. You claim yours when she claims hers. Also if you don't know when you are 65 you can claim medicare based on your wife's contributions. With medicare you can claim when you are 65 and don't have to wait for your wife to claim.
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Old Sep 25th 2017, 1:25 pm
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Default Re: UK state pension and USA social security

Originally Posted by lansbury View Post
.... Also if you don't know when you are 65 you can claim .....
Is this missing a comma, or are you covering the possibility that Phoenixsuns has no birth certificate, or has lost his marbles?
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Old Sep 25th 2017, 2:59 pm
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Default Re: UK state pension and USA social security

Originally Posted by lansbury View Post
I claim my SS via my spouse having never worked in the USA. You will receive 50% of her SS payment. You claim yours when she claims hers. Also if you don't know when you are 65 you can claim medicare based on your wife's contributions. With medicare you can claim when you are 65 and don't have to wait for your wife to claim.
Many thanks for the helpful advice
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Old Sep 25th 2017, 5:27 pm
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Default Re: UK state pension and USA social security

Originally Posted by Pulaski View Post
Is this missing a comma, or are you covering the possibility that Phoenixsuns has no birth certificate, or has lost his marbles?
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Old Sep 25th 2017, 5:53 pm
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Default Re: UK state pension and USA social security

Originally Posted by Pulaski View Post
Is this missing a comma, or are you covering the possibility that Phoenixsuns has no birth certificate, or has lost his marbles?
In the absence of Ian I was seeing who else might come out of the woodwork to nit pick

The don't should have been didn't, or one of those comma thingies after know. I want to Tyler's Croft Secondary Modern School, gramma was not a compulsory requirement to be allowed to leave.
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Old Oct 23rd 2017, 3:54 am
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Default Re: UK state pension and USA social security

Originally Posted by lansbury View Post
I claim my SS via my spouse having never worked in the USA. You will receive 50% of her SS payment. You claim yours when she claims hers. Also if you don't know when you are 65 you can claim medicare based on your wife's contributions. With medicare you can claim when you are 65 and don't have to wait for your wife to claim.
I assume though wife would have to be 62 to collect 1/2 my US social security payments ?

Also, can one work outside of USA while collecting US social security ? I read somewhere that one cant work or more than 45 hours a month and still receive social security. ( Trying to determine whether to take social security at 62- makes sense except not if I would be penalized working more than 45 hours a month).
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Old Oct 23rd 2017, 6:57 am
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Default Re: UK state pension and USA social security

Yes you wife must be old enough to claim SS. Not sure about continuing to work. That didn't effect us so I have not read up on it.
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Old Oct 23rd 2017, 1:28 pm
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Default Re: UK state pension and USA social security

Originally Posted by morpeth View Post
I assume though wife would have to be 62 to collect 1/2 my US social security payments ?

Also, can one work outside of USA while collecting US social security ? I read somewhere that one cant work or more than 45 hours a month and still receive social security. ( Trying to determine whether to take social security at 62- makes sense except not if I would be penalized working amore than 45 hours a month).
I hadn't heard about an hours worked/mth cap, but there is a prorata clawback if you earning more than a certain amount.

I found this current advice for 2017:
In 2017, Social Security recipients who earn more than $16,920 will have $1 withheld for every $2 earned above that limit. Recipients who turn their full retirement age this year can earn up to $44,880, but their benefit is reduced by $1 for every $3 earned above this higher limit.
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