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Understanding Social Security When Retiring Outside of the United States

Brits leaving the United States

If you leave the United States you can rest assured that you will still be able to draw your US-based Social Security payments. The two sole exceptions are for those expats who make the unlikely decision to emigrate to Cuba or the even more unlikely decision to emigrate to North Korea.

Should you pass away, you can rest assured that your spouse will still be able to draw your income, regardless of where they live and regardless of whether you are a US citizen. However, this situation may be complicated if your spouse originates from a country that does not share a Social Security Agreement with the US.

There are number of other important considerations to be aware of if you leave the US. For example, if you are a Green Card holder or US citizen, all of your worldwide income remains subject to IRS taxation regardless of your country of residence – this includes up to 85% of your social security income.

Non-US citizens and non-Green Card holders may be subject to a 30% IRS levy on 85 percent of their social security unless they otherwise receive a reduction via an income tax treaty between the US and their country of residence/origin. British citizens benefit from such a treaty and are therefore exempt from this 30% tax; however, they remain subject to their particular tax obligations in the UK if they are considered resident there.

Blacktower for International Wealth Management Expertise

The team at Blacktower (US) LLC can help you structure your wealth, cross-border tax and retirement planning so that you can make the most of your unique cross-border financial situation.

For more information about us and how we may be able to help you better manage your wealth and retirement planning, contact us today.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

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