WEP and the SSA
#31
Just Joined
Joined: Oct 2016
Location: Maryland
Posts: 25
Re: WEP and the SSA
For SSA policy on WEP recalculation and related questions, see:
https://drive.google.com/open?id=0Bz...W1UVVl5NWxRdnM
Please note that US Rep. Sarbanes represents only constituents in the 3rd district in Maryland. If you have questions about the information in the above-linked document, please contact your congressman, not Rep. Sarbanes (unless he happens to be your congressman).
https://drive.google.com/open?id=0Bz...W1UVVl5NWxRdnM
Please note that US Rep. Sarbanes represents only constituents in the 3rd district in Maryland. If you have questions about the information in the above-linked document, please contact your congressman, not Rep. Sarbanes (unless he happens to be your congressman).
Last edited by gpslouis; Dec 1st 2016 at 9:10 pm.
#32
Just Joined
Joined: Apr 2014
Posts: 13
Re: WEP and the SSA
If I apply for SS at age 62 and I am not eligible for UK state pension until age 67, should I wait until I start receiving my UK state pension before I inform SSA?
Obviously I won't be in receipt of non SS pension for 5 years, so surely they don't apply WEP reduction until the point I am eligible for my UK state pension???
Do I have this correct?
Thanks
Obviously I won't be in receipt of non SS pension for 5 years, so surely they don't apply WEP reduction until the point I am eligible for my UK state pension???
Do I have this correct?
Thanks
#33
Just Joined
Joined: Oct 2016
Location: Maryland
Posts: 25
Re: WEP and the SSA
If I apply for SS at age 62 and I am not eligible for UK state pension until age 67, should I wait until I start receiving my UK state pension before I inform SSA?
Obviously I won't be in receipt of non SS pension for 5 years, so surely they don't apply WEP reduction until the point I am eligible for my UK state pension???
Do I have this correct?
Thanks
Obviously I won't be in receipt of non SS pension for 5 years, so surely they don't apply WEP reduction until the point I am eligible for my UK state pension???
Do I have this correct?
Thanks
SSA should be informed of your UK pension only when you start to receive it (or shortly before).
Are you sure that you want to start taking SS at age 62? If you don't actually need the money at age 62, you might be better holding off until "full retirement age" (probably age 67 for you). Or maybe not.
The absolutely best free analyzer that I know of to help optimize your SS is at:
http://www.bedrockcapital.com/ssanalyze/
This particular calculator takes WEP into consideration.
#34
Re: WEP and the SSA
If I apply for SS at age 62 and I am not eligible for UK state pension until age 67, should I wait until I start receiving my UK state pension before I inform SSA?
Obviously I won't be in receipt of non SS pension for 5 years, so surely they don't apply WEP reduction until the point I am eligible for my UK state pension???
Do I have this correct?
Thanks
Obviously I won't be in receipt of non SS pension for 5 years, so surely they don't apply WEP reduction until the point I am eligible for my UK state pension???
Do I have this correct?
Thanks
#35
Heading for Poppyland
Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,540
Re: WEP and the SSA
If I apply for SS at age 62 and I am not eligible for UK state pension until age 67, should I wait until I start receiving my UK state pension before I inform SSA?
Obviously I won't be in receipt of non SS pension for 5 years, so surely they don't apply WEP reduction until the point I am eligible for my UK state pension???
Do I have this correct?
Thanks
Obviously I won't be in receipt of non SS pension for 5 years, so surely they don't apply WEP reduction until the point I am eligible for my UK state pension???
Do I have this correct?
Thanks
#36
Just Joined
Joined: Sep 2016
Posts: 14
Re: WEP and the SSA
What about the other way around from the OP? Can I collect my UK pension at my state retirement age (66) without it affecting my Social Security in any way in the intervening four years if I wait until age 70 to file for Social Security?
I confess to struggling through the maze of WEP.
I confess to struggling through the maze of WEP.
#37
Re: WEP and the SSA
What about the other way around from the OP? Can I collect my UK pension at my state retirement age (66) without it affecting my Social Security in any way in the intervening four years if I wait until age 70 to file for Social Security?
I confess to struggling through the maze of WEP.
I confess to struggling through the maze of WEP.
How it affects the eventual calculation of WEP I recall is answered somewhere in this thread. http://britishexpats.com/forum/usa-5...curity-733297/
#38
Forum Regular
Joined: Dec 2006
Location: Atlanta
Posts: 66
Re: WEP and the SSA
I am doing drawdowns, which will continue for several years, but currently declaring it all as taxable, I do not want to be the guinea pig that becomes the court case to establish what is correct. If I see proof that the drawdown approach allows 25% to be non-taxable, then I will issue amended returns (I have only been doing this for 2 years).
#39
Just Joined
Joined: Feb 2016
Location: Boston, MA
Posts: 28
Re: WEP and the SSA
I have the option to pay additional class 3 NICs in the UK to increase my UK pension. I have only 25 years of NI and so the payments would make economic sense to top me up to say 35 years EXCEPT that I am unlikely to reach 30 years of SS. Am I right in understanding that effectively half of any pension increase I achieve( due to additional voluntary NICs) would be used to reduce my SS due to WEP? Thanks in advance
#40
Heading for Poppyland
Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,540
Re: WEP and the SSA
I have the option to pay additional class 3 NICs in the UK to increase my UK pension. I have only 25 years of NI and so the payments would make economic sense to top me up to say 35 years EXCEPT that I am unlikely to reach 30 years of SS. Am I right in understanding that effectively half of any pension increase I achieve( due to additional voluntary NICs) would be used to reduce my SS due to WEP? Thanks in advance
#41
Re: WEP and the SSA
I have the option to pay additional class 3 NICs in the UK to increase my UK pension. I have only 25 years of NI and so the payments would make economic sense to top me up to say 35 years EXCEPT that I am unlikely to reach 30 years of SS. Am I right in understanding that effectively half of any pension increase I achieve( due to additional voluntary NICs) would be used to reduce my SS due to WEP? Thanks in advance
#42
Just Joined
Joined: Feb 2016
Location: Boston, MA
Posts: 28
Re: WEP and the SSA
I don't think I can apply for class 2 as I haven't paid for almost 17 years. Either way, as there is no impact on WEP it seems to be a great deal as I calculate it. Even allowing for the fact that the additional pension value would be extra income and therefore taxable, it seems like the payback period is still less than 5 years.
Does anyone think there is a risk that the UK govt would change the rules allowing US based people ( I am a resident but still a Brit) to receive the full state pension ?
Does anyone think there is a risk that the UK govt would change the rules allowing US based people ( I am a resident but still a Brit) to receive the full state pension ?
#43
Forum Regular
Joined: Apr 2016
Location: California
Posts: 233
Re: WEP and the SSA
Well it would seem to make sense to restrict NI contributions for non-residents, it doesn't seem fair for the UK taxpayer to be heavily subsidizing non-residents' pensions, the US doesn't do the same. But my guess is that any change would not affect past contributors.
#44
Re: WEP and the SSA
The time gap has nothing to do with, nothing at all. ..... But if you want to pay £715/yr when you may well be eligible to buy seven years for just over £1,000, be my guest.
#45
Re: WEP and the SSA
Voluntary NI for expats was brought in so that they could keep up with their payments and would not have a hole in them when they returned to the UK. While the expat is not in the UK they won't be using any UK benefits so you could argue that the UK is actually getting a good deal as they are getting payments from foreign earnings that would normally go un taxed. The level of that payment has been too low for a long time and the replacement of Class 2 with the higher Class 3 payment is long over due.