How To Get Your Social Security Payment When Living Overseas

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Some people have asked me about how to get their Social Security check (or other retirement plan money) after they’ve moved abroad.  Here is one simple way to get access to your retirement money when you’re living overseas.

First, I need to say that we all have our own situations, so consider this as one option.  If this doesn’t fit your needs, look for a method that does.

Second, I’m not an accountant or tax lawyer.  I’ve hired them for myself, but my situation may not match yours.  Whatever plan you think about doing, I suggest you spend a little time hiring a professional to check it out, to make sure it is legal and keeps the largest amount of money in your pockets.

A simple way to get your retirement money overseas

If you’re a US citizen, you’re going to need to deal with the HIRE Act in 2013 (unless it is changed or repealed).  One part of this act makes it difficult to move money overseas.  So an easy way to avoid the problems it causes is to keep your money back home (for the most part).

You can have the money from your retirement account, or Social Security check, sent to your bank accounts in the US.  Then you just use ATMs in your new country to get your money there.  This avoids any problems you might experience with trying to have your retirement checks direct-deposited into a foreign bank.

If you’re going to use this method, I suggest doing the following:

1. Have accounts at two banks in the US.  Get debit cards for each of them (if you can get a Visa-based card from one and a MasterCard-based debit card from the other, that’s even better).  This way, if you ever have any problems accessing one account when you’re overseas (you lose a card, the account gets frozen, etc.), you’ll have a backup way to get money.
2. Get your accounts at banks that don’t charge you for using ATMs at other banks, and look for ones that will reimburse you for any ATM fees you get charged.
3. Look for banks that don’t charge you for foreign currency conversions.  These may be difficult to find.  Try Chase Bank and their cards that are tied to frequent flyer programs.  Besides saving you foreign exchange fees, you may earn some frequent flyer miles.
4. When you open your account, tell the banker that you want the ability to initiate a wire transfer from another country.  They may have you fill out some extra forms and give you a PIN to use when you call in to request a wire transfer.  You’ll need to do this before you move overseas.
5. Consider applying for credit cards that don’t charge foreign exchange fees – like Capital One, American Express Platinum, and other premium cards.  Personally, I don’t like using credit cards.  However, if you have a credit card set up for automatic payments from your US bank account, this gives you another alternative to accessing your money.
6. Contact the US Embassy in the country where you’ll be moving.  Also check on the Internet forums dedicated to expats in the country where you’re moving.  They may know of another easy way to get your money to that country.

If you follow this technique, your retirement money will be sent to your US accounts (where you won’t need to worry about the HIRE Act).  Then, you’ll just withdraw the money as cash overseas, to pay your bills.  If you ever need a large amount of money, maybe to buy a car or house, you’ll be able to wire the money to yourself.

Other options for your retirement money

This is just one way to deal with your retirement accounts.

When I moved overseas, I cashed out my retirement accounts and paid the penalties and taxes.  I was a couple of decades away from retirement and decided that I’d rather have that money to start building a business overseas.

If you’re concerned about the government ever grabbing retirement account money to pay off government debts (as they have in Argentina, Hungary, and France), you may want to look into moving your retirement account offshore.  You can do this through something called a Checkbook IRA, or Passport IRA.  You’ll need to find a good tax advisor to help you do this.

If you’re depending on your retirement account, or Social Security, to pay your expenses after moving overseas, make sure you always have a backup plan (or two) to get the money.  A bit of work before you leave can save you from big problems after you move to your new country.