While the idea of retiring overseas sounds dreamy with warmer weather and lower costs of living sounding favorable, the news that the Social Security benefits of 700,000 citizens were temporarily suspended may make you stop in your tracks. For U.S. citizens who wish to use their Social Security benefits to fund their retirement abroad, a few key steps need to be considered to ensure the checks are received well.
The reason as to why the Social Security Administration (SSA) suspended benefits of thousands of retirees living outside the U.S. could be attributed to citizens’ missed paperwork.
The cause behind the suspended Social Security benefits
An important fact is that U.S. citizens who choose to reside in countries like Cuba, North Korea, and former Soviet Republics won’t be paid benefits from the SSA. Benefits will only be paid to these citizens when they enter a country where payments can be sent.
Despite this setback, majority of the retirees living abroad receive their Social Security benefits reliably. One requirement from the SSA is for citizens living outside of the U.S. to perform periodic verification so as to maintain eligibility. Eligibility is maintained through a Foreign Enforcement Questionnaire, also known as Form SSA-7162 (or SSA-7161 if you have a representative payee).
This form is sent to recipients every one or two years based on their status and is used to confirm basic details like current address, phone number, and any changes that might affect their benefits. Failure to return this important form will lead to the SSA temporarily suspending Social Security benefit payments.
The process of getting benefits reinstated
While the temporary suspension of Social Security benefits may be tragic, the fix is simple. The first step is to get in touch with the Federal Benefits Unit (FBU) in the U.S. embassy or consulate in your country of residence. These units act as the Social Security Administration’s official outposts for Americans living abroad.
The steps are as follows:
- Contact the FBU via email or by phone. When contacting the FBU include your full name, Social Security number, a valid telephone number, and a short explanation of your issue.
- Submit the SSA-7162 form. Upon completion of this form and once the FBU receives it, you will be given back your Social Security benefits within 7 working days.
The most important thing for citizens to remember is that they need to respond to the FBU promptly and fill out all questionnaires needed to avoid unnecessary further delays in payment.
Understanding how often to fill out Form SSA-7162
Citizens should receive gifts from the SSA and avoid facing a temporary suspension of benefits at all costs, and it starts with understanding when exactly the SSA wants to hear from you in the form of the questionnaire. Questionnaires are sent every year or every second year based on certain circumstances.
An annual questionnaire is required when:
- Retirees are 90 years or older
- Retirees have a representative payee
- If a citizen is not receiving benefits as a spouse or survivor
The questionnaire needs to be filled out every two years if:
- You are receiving benefits as a spouse, parent, or survivor
- You live in certain countries like Spain, France, Canada, Costa Rica, and several others
Another way to tell if you are on a biennial schedule is based on the year that you received the form according to your Social Security number.
- If your Social Security number ends in 00–49, you’ll receive the form in even-numbered years.
- If your Social Security number ends in 50–99, expect it in odd-numbered years.
Keep check on the mail
The questionnaire usually arrives between May and June, however, if a citizen’s form doesn’t arrive when expected, the citizen should contact the FBU immediately.
It is important to keep check on the mail, so your Social Security benefits does not get temporarily suspended, but it is important to note that living abroad doesn’t necessarily mean giving up on all your Social Security benefits.
