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Ask Rusty – Will My UK Pension Have an effect on My US Social Security? – L’Observateur

Share this…FacebookPinterestTwitterLinkedin Pricey Rusty: I’m 57 years outdated, was born within the UK, and since 1988 have labored within the US….

By Staff , in Social Security , at June 10, 2021



Pricey Rusty: I’m 57 years outdated, was born within the UK, and since 1988 have labored within the US. I’ve all the time paid US taxes and Social Security. For the final 20 years, my annual earnings has sometimes been effectively north of $100K. In recent times I’ve made voluntary funds to the UK Nationwide Insurance coverage system seeking to declare a retirement profit from the UK in addition to from the US. My concern is that if I declare the UK profit, this may have an effect on my US Social Security declare. Any perception you possibly can share can be appreciated. Signed: Fearful

Pricey Fearful: In case you have 30 or extra years of U.S. employment the place you paid into Social Security by way of payroll taxes on “substantial” earnings, your U.Ok. pension is not going to have an effect on your U.S. Social Security profit whenever you declare it. Social Security’s definition of “substantial” earnings is completely different for annually however, typically, if you happen to labored full time within the U.S. and paid into Social Security by way of payroll taxes since 1988, the so-called Windfall Elimination Provision (WEP) received’t have an effect on your US Social Security advantages.

Here’s a hyperlink to Social Security’s WEP definition which features a desk of “substantial” earnings wanted to depend for WEP functions: www.ssa.gov/pubs/EN-05-10045.pdf. The doc at this hyperlink additionally describes how WEP works you probably have lower than 30 years of considerable U.S. earnings. With lower than 30 years of considerable earnings on which you paid into Social Security your U.S. profit can be lowered resulting from your U.Ok. pension. The quantity of discount would depend on what number of years of considerable SS-covered earnings you’ve, however in no case can the discount be greater than 50% of your U.Ok. pension.
If wanted, you may get your Earnings Assertion from Social Security, which is able to present your precise taxable SS earnings for annually to check towards the WEP substantial earnings chart discovered on the above hyperlink. The best solution to get your Earnings Assertion is by way of your “My Social Security” on-line account. When you haven’t but arrange your private on-line account with SS, you possibly can simply achieve this at this hyperlink: www.ssa.gov/myaccount.

So, the underside line is that this: In case you have contributed to U.S. Social Security from “substantial” earnings for a minimum of 30 years, your Social Security profit is not going to be affected by your U.Ok. pension; you probably have lower than 30 years of contributions to SS, it can. As it’s possible you’ll know, you can not gather your U.S. Social Security till you might be a minimum of age 62, however if you happen to declare at that age your profit quantity can be lowered by 30%. You’ll attain your full retirement age at age 67, and that’s the level at which you’re going to get 100% of what you’ve earned by working within the U.S. – topic to WEP discount solely you probably have lower than 30 years of contributions to Social Security.

This text is meant for data functions solely and doesn’t symbolize authorized or monetary steerage. It presents the opinions and interpretations of the AMAC Basis’s workers, skilled and accredited by the Nationwide Social Security Affiliation (NSSA). NSSA and the AMAC Basis and its workers should not affiliated with or endorsed by the Social Security Administration or every other governmental entity. To submit a query, go to our web site (amacfoundation.org/applications/social-security-advisory) or electronic mail us at [email protected]



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