Do you intend to leave the country but are unsure if you will continue to get Social Security Disability Insurance (SSDI) benefits? Fortunately, if you are a citizen of the United States and are entitled to receive Social Security benefits, you may do so outside of the country.
There is a list of countries where you can continue getting benefits from the Social Security Administration (SSA). It includes but is not limited to Austria, Hungary, Poland, Belgium, Iceland, and Portugal. There are some countries that the SSA does not accept, including Tajikistan, Moldova, Azerbaijan, Belarus, Kazakhstan, and Kyrgyzstan.
This page will provide more information regarding getting SSDI benefits outside the United States. A full list of countries you can move to while receiving SSDI can be found here.
Moving To Another Country On SSDI
According to the SSA, you have no restrictions on where you can live while collecting SSDI benefits. You can relocate to almost any country and get SSDI benefits as long as you remain eligible. It is possible to collect SSDI while living in another country.
Eligibility Requirements For SSDI
You must have a disability that prevents you from working and supporting yourself to be eligible for SSDI benefits. It must be anticipated that your severe medical condition or disability will last, or is expected to last, at least one year or result in death.
To qualify for benefits, you must also have accrued sufficient work credits during your prior employment. You may need a certain amount of credits, depending on how old you were when you first became incapacitated
Documentation Required for Moving Abroad On SSDI
You must let the SSA know if you intend to relocate to another country while receiving SSDI benefits. To ensure that your benefits are paid while you are living overseas, you will also need to provide SSA-specific documents.
Proof of your new residence is one of the most crucial documents you must present. A lease agreement, a utility bill, or any other official document with your new address should work. Your new phone number and email address are also required.
You must also provide a copy of your passport to the SSA along with your new address. This is done to ensure your benefits aren’t being paid to someone else and to confirm your identity. You must provide the SSA with your banking information for your benefits to be directly paid into your account.
Cost-Of-Living Adjustment And SSDI Payments
SSDI benefits are modified annually to reflect the increased cost of living. The Cost-of-Living Adjustment (COLA) is the name given to this adjustment.
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks changes in the cost of goods and services used by urban households, serves as the foundation for the COLA.
The SSA may change your benefits if you relocate while receiving SSDI benefits due to the cost of living in your new country of residence.
Your benefit payments can increase if living expenses in your new country are higher than in the US. However, your advantage will increase if the cost of living in your new country is cheaper than in the United States.
The SSA bases the cost of living adjustments on the country you reside in and the exchange rate between the dollar and the country’s currency. For the SSA to decide how to adjust your benefit payments, they could also need more information, like confirmation of living expenses.
Tax Implications Of Moving Abroad On SSDI
If you move abroad while receiving SSDI payments, there can be tax repercussions. No matter where you live, you are typically liable for paying US income tax if you are a citizen or resident alien of the country. However, the US has tax agreements with many countries that could impact your tax liability.
Unless you have other sources of income that take you over a specific tax bracket, SSDI benefits are normally not taxable under U.S. tax law. If you relocate, you might have to pay taxes in your new country on your SSDI benefits.
Health Insurance Coverage While Living Abroad
You might be concerned about what would happen to your health insurance if you relocated while collecting SSDI benefits. After receiving SSDI benefits for two years, recipients are eligible for Medicare.
But only residents of the United States and its territories are covered by Medicare. You must get health insurance at the place you are if you relocate to another country. The country you are moving to will determine the type of coverage and the price.
While some countries require you to acquire private health insurance, others have universal government health insurance plans that cover all citizens.
Before you relocate, looking into the health insurance options available there is crucial. To be covered in the event of medical emergencies when returning to the US, you might also consider getting travel health insurance.
Changing Your Address And Reporting Changes To The SSA
You must notify the SSA of your new address if you relocate abroad while receiving SSDI benefits. Your benefits may be suspended or terminated if you don’t follow the requirements. The SSA accepts change of address notifications via phone, mail, or online. Any additional changes to your situation that might affect your eligibility for benefits should be reported to the SSA.
You must notify the SSA of any changes, such as if your medical condition improves and you can resume working. If you don’t, there’s a chance your benefits will be paid out in excess, and you might have to pay the benefits back.
Conclusion
If you continue to be eligible and submit the required paperwork to the SSA, you can relocate to almost any country while collecting SSDI benefits. The SSA may change your benefit payments based on the cost of living in your new country of residence. You may also need to take tax implications into account.
It’s crucial to look into the health insurance alternatives available in your new country and to let the Social Security Administration know of any changes to your situation that might affect your eligibility for benefits. You can continue getting SSDI benefits while residing outside the United States by remaining knowledgeable and abiding by the laws and regulations.
