How U.S. Social Security works for retirees overseas

With the rising cost of living and inflation, many workers in Miami are increasingly dreaming of retiring outside the United States.

Some immigrants want to spend their golden years in countries where they have roots and family, where they can achieve a better quality of life on a limited budget.

Social Security income has lost 20% of its purchasing power over the last 10 years. An American retiree receives an average of $2,071 per month in Social Security benefits in 2026.

That income doesn’t go far in the Miami metropolitan area, where the cost to rent a one-bedroom apartment averages between $1,800 and $2,500. If a retirees have paid off a mortgage, they still must pay property taxes and insurance, which can raise annual costs between $5,000 and $8,000 — an almost impossible sum to cover for those living on fixed incomes.

The high cost of food in Miami is another financial factor retirees weigh heavily. Florida households spend an average of $720 per month on grocery purchases, according to a study published Jan. 29 by Trace One, a company specializing in regulatory compliance and solutions for the food and beverage industry.

The option of dining out has also become more expensive: Floridians can now spend an average of $990 per month on restaurants.

Social Security benefits in another country

At these price levels, it’s no surprise that many Miami residents who are already retired or about to retire wonder whether they can collect U.S. Social Security payments in another country. The answer depends on immigration status and the country where they want to live.

To receive Social Security retirement benefits, a worker must have accumulated 40 credits, equivalent to 10 years of work in the United States.

People planning their retirement are advised to apply three months before reaching retirement age. supersizer Getty Images

A person can retire as early as age 62, with a 30% reduction in benefits. Full retirement age, however, is 65, or 67 for those born after 1960, and only from that point would they receive the full benefits earned during their working years.

Evelyn Linares, a Social Security specialist and spokesperson in South Florida, recommends that workers begin the paperwork for their retirement benefits three months before reaching retirement age.

Can you collect U.S. retirement benefits in Cuba?

U.S. citizens or retirees with resident immigration status can collect their benefits while living abroad. They would receive them via direct deposit to banks in countries that have agreements with the United States, as is the case for most of Latin America.

In fact, many Miami retirees move to Spain, Costa Rica, Colombia, Guatemala and Panama, Linares notes, pointing to the diverse demographic makeup of Miami-Dade residents.

There are, however, two fundamental exceptions: Cuba and North Korea, where retirement payments cannot be received because of Department of the Treasury sanctions on those countries.

The rising cost of living in South Florida is increasing the interest of many immigrants in retiring in Latin American countries and Spain. LSOphoto Getty Images

In the event of a change of government in Cuba, Americans and Cubans with legal residence who retire after working in the United States could collect their benefits on the island, as immigrants from other countries currently do, Linares anticipates.

“If policy changes, the regulations would change,” Linares said, noting that this would take time because changes and adjustments would be required.

Supplemental Assistance cannot be collected outside the United States

Unlike retirement benefits, which are based on the worker’s contributions, Supplemental Security Income is a federal assistance program administered by the Social Security Administration.

SSI is intended for people with low and limited incomes, and because it is designed to cover essential expenses in the United States, it cannot be collected in another country.

Linares points out that people who apply for Supplemental Assistance fill out documents providing verifiable information under oath. Any violation of that oath can be considered a crime and fraud with legal consequences.

People may travel, but they should not remain outside the country for more than 28 days, Linares warns, because their benefits are paused.

“It’s a low-income program, not for vacationing,” Linares says, noting that SSI beneficiaries are monitored and their departures and re-entries to the country are reviewed when applying for or renewing benefits.

“Many people are living in Cuba or traveling there frequently, and their relatives cash the SSI checks and send them the money,” Linares said, warning that if this is proven, not only could their assistance be terminated, but they could also face legal consequences.

The Office of the Inspector General, which is responsible for preventing fraud, waste and violations of the law, is tracking these kinds of behaviors that drain funds from federal assistance programs.

Automatic monitoring is currently being conducted on people who do not report trips outside the United States and who commit fraud with programs like Supplemental Assistance.

It is the beneficiaries’ obligation to report address changes to the Social Security Office. Legal residents must inform the Federal Benefits Unit t the U.S. embassy about extended travel. They must also file U.S. taxes on their income, even if it is earned in another country.

Countries that better cover the cost of living

A new study by Moorepay, specialists in human resources and payroll, compared average state pensions in 85 countries, measuring how well they cover local living costs. The United States ranks 13th worldwide, with Social Security covering 163.46% of the basic cost of living.

While this places the United States ahead of the United Kingdom and several other developed economies, it still falls behind countries such as Italy, Germany and the Nordic nations, raising questions about the suitability of long-term retirement given ongoing cost-of-living pressures.

Other findings from the study: U.S. retirees have an average annual surplus of $9,108 after basic expenses, lower than many of their European counterparts. Countries such as Italy, Germany, Denmark, Finland and Luxembourg offer larger surpluses relative to living costs.

How U.S. Social Security works for retirees overseas

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