Social Security - Facts You Must Know - Part1
America is a country of immigrants. People from all over the world come here for the American dream. Some will go back to their home country after working here for few years while others settle down in the USA.
In the USA, your very first paycheck shows a notable deduction for Social Security tax. It's 6.2 percent in the year 2025. Most people know this money goes toward funding retirement benefits. However, many wonder what happens if they return to their home country. In this article series I will answer the top ten most common questions about Social Security.
- Who is eligible to receive social security?
- When can one start receiving social security?
- What is the maximum social security one can receive?
- How can I check my social security projections?
- Can I receive benefits if I live outside the United States?
- What happens to benefits if someone die? will their spouse/kids get them?
- Will the Social Security benefits get taxed?
- Can someone collect benefits if they are still working?
- Can the benefits be stopped and restarted?
- Will the social security benefits disappear in future?
Who is eligible to receive social security?
You earn credits based on your yearly income from work that pays into Social Security (through payroll taxes). In 2025, you earn 1 credit for every $1810 in earnings. Maximum credits for year are 4. So, by earning $7240 in the year you can earn 4 credits. To qualify for retirement benefits, you generally need 40 credits, equal to 10 years of work.
When can I start receiving social security?
For people born after 1960, the full retirement age to receive social security is 67. Though you can start it from age 62, your benefits will be around 30% less. The same way you can delay receiving social security up-to 70 years. If you start at age 70, you will get enhanced benefits. Around 24% more.
What is the maximum social security one can receive?
Your social security payment is calculated based on your 35 maximum earning years. But with a wage cap of $176,000 per year.
| Claiming Age | Maximum Monthly Benefit |
|---|---|
| Age 62 (early) | ~$2,710–$2,830 |
| Age 67 (Full Retirement Age) | ~$3,822–$4,018 |
| Age 70 (max delay) | ~$4,873–$5,108 |
Instead of giving precise number, range is given because the wage cap of $176,000 given above is as of 2025. It will change each year to catch up with the wage growth in the USA.
How can I check my social security projections?
The best way to find your social security projects is to use this calculator provided by the social security administration. Click the link and scroll down a bit where you can enter your personal details to see your benefits in today's dollars or future dollars adjusted to inflation. Also, you can create your account on https://ssa.gov to see your eligibility to receive social security and how much you can receive with your current work history. Once you login to your account, you can use "Review your full earnings record now" option to see all your social security wages for the years you already worked.
Can I receive benefits if I live outside the United States?
Yes, you can. If you have earned 40 credits by working in the United States, typically through 10 years of covered employment. However, the United States Treasury cannot send payments to certain restricted countries such as North Korea and Cuba. If you live in one of these, your benefits will be paused and resume once you move to an eligible country.
You do not need to return to the United States to apply. You can apply through a United States Embassy, Consulate, or a Federal Benefits Unit in your country. Each year, you may need to submit a proof of life form to continue receiving benefits. This is usually sent by mail and must be returned to avoid payment interruption. The United States has totalization agreements with many countries that help avoid double taxation and protect your benefit rights.
Check out the below links from ssa.gov for more information
- Social Security: Payments Outside the United States
https://www.ssa.gov/international/payments.html - List of Countries Where SSA Can and Cannot Send Payments
https://www.ssa.gov/international/countrylist1.htm - Totalization Agreements and Eligibility by Country
https://www.ssa.gov/international/agreements_overview.html - IRS Guide to Tax Treaties
https://www.irs.gov/individuals/international-taxpayers/tax-treaties
That's a wrap this week. We will discuss the rest in the next part of this article series. Happy learning!
