Social Security questions

Nope. It's different every month. The rate I am paid in dollars changes only with the COLA every year. How that ends up as £ in my UK bank changes monthly. Until this month's disbursement it was pretty much matching the exchange rate. But this month's is slightly off - I'm getting a dollar as being equivalent to £1.2235 when the exchange rate this morning was around 1.19. Hmmm. Perhaps it was higher just after midnight, when they dumped the money into the Irish bank to transfer over to me in pounds?

Interesting.  BTW, the dollar has never been equivalent to £1.2235.  It's the other way round.

Interesting.  BTW, the dollar has never been equivalent to £1.2235.  It's the other way round.

Yeah, I always manage to write that backwards.

Yeah, I always manage to write that backwards.

Personally wish it was the other way round!  Other opinions are available.

Not me! All my income is in US Dollars. 

Of course,  the Daughter, whose only income is in UK pounds, isn't too thrilled right now.

My understanding, based on a discussion I followed some years ago, is that the exchange rate is fixed when the US start their payments.  People in that discussion were complaining that the rate had changed over the years and that they were now losing out - but once the rate is set it's never reviewed.  Of course, there's winners and losers.  Some were suggesting (good luck!) that the US should review the rate periodically, say every year.

In an effort to clear up the confusion, you are 100% accurate, spot on. Unfortunately, there can be two SSA figures, and the above is for SSA calculations requiring WEP calculations. WEP is determined at the time of application/awarding of the benefit or when a new UK pension is taken after award of the SSA benefit. The exchange rate used to calculate WEP applicability on UK pensions is fixed at that time and cannot be changed when rates vary in the future.

Once that WEPed benefit is calculated, it becomes the Month 1 benefit. After that point, as has been pointed out, the Month 1 benefit is adjusted for yearly COLA and monthly variances in exchange rates. If there is no WEP, the standard calculation for SSA benefit is automatically Month 1 and changes accordingly. I believe Nan D. is in the latter situation.

Not me! All my income is in US Dollars. 

Of course,  the Daughter, whose only income is in UK pounds, isn't too thrilled right now.

But if your income is in dollars and you live in the UK you are laughing at the moment, no?

My 401k is paid out in dollars (obviously), which I transfer to the UK.  With the dollar being so strong (or the pound weak, whichever) I'm much better off.

If I were going on holiday to the US I wouldn't be so happy though.

In an effort to clear up the confusion, you are 100% accurate, spot on. Unfortunately, there can be two SSA figures, and the above is for SSA calculations requiring WEP calculations. WEP is determined at the time of application/awarding of the benefit or when a new UK pension is taken after award of the SSA benefit. The exchange rate used to calculate WEP applicability on UK pensions is fixed at that time and cannot be changed when rates vary in the future.

Once that WEPed benefit is calculated, it becomes the Month 1 benefit. After that point, as has been pointed out, the Month 1 benefit is adjusted for yearly COLA and monthly variances in exchange rates. If there is no WEP, the standard calculation for SSA benefit is automatically Month 1 and changes accordingly. I believe Nan D. is in the latter situation.

Ah OK.  Thanks for that clarification.  As I said, the conversation I followed was a good few years ago, so I couldn't remember the exact topic being discussed but I knew it was something to do with the exchange rate being fixed at inception.  I did remember people complaining that they were losing out.  People don't tend to complain if it's in their favour!

Ok, I am curious.  I got my SSA payment on the 3rd of the month, as always.  I know what the dollar amount is, and I know what the pound amount that arrives is, so I can divide and get the exchange rate.  Here are the rates for the last few months.

May   1.3046
June   1.2626
July    1.2702
Aug    1.2168
Sept   1.2235

I was always told (or thought so) that I'd get the best exchange rate by having the government deposit the money directly into my UK bank (granted, it comes via Bank of Ireland).  When I look at the published exchange rates for the last few days, I find on https://www.exchangerates.org.uk/GBP-USD-03_09_2019-exchange-rate-history.html the following:

On September 03, 2019 the Official GBP to USD Exchange Rate:
Close: 1 GBP = 1.2087 USD
Best: 1 GBP = 1.2106 USD
Worst: 1 GBP = 1.1959 USD

The rate my Sept 3 payment got was $1.2235.  I don't understand why that would be if the highest it traded at was $1.2106? Granted, we're shaving pennies here, but I'm curious?

I don't know what time they make the conversion, but these are the rates going on the two days:

On August 2 (August 3 was a Saturday), the GBP/USD had a range of 1.2091 to 1.2170.  It opened at 1.2117 and closed at 1.2161.

On September 3, the GBP/USD had a range of 1.1959 to 1.2106.  It opened at 1.2064 and closed at 1.2084.

I wonder if they loaded it in early, as Monday 2 Sept was a holiday in the USA? Otherwise, the rate I got for 3 Sept was higher than what the rates were for that day....

You guys are all experts here so I thought maybe I would put my question in this thread..

I think we are going to be heading home next fall and I have a condition that now qualifies me for social security / disability, though I am well under the starting age (42). Can I still claim if I have been living here, or at least start the paperwork? Or do I have to move home and then file? I have more than the 40 credits, but does by time in the UK count? Is there anyone I could speak to about this?

Just a quick update: I've finally received my first phone call from the FBU.  Now I have an (phone call) appointment arranged for late January 2020 - the first one available!  If you look back you'll see that I first made contact with the FBU, via a form on their website, in July 2019.  Having heard nothing, I submitted again in September.

Moral of the story is, if you're anywhere close to wanting to take your SS retirement benefit, don't delay - and be prepared for a long wait!

Just a quick update: I've finally received my first phone call from the FBU.  Now I have an (phone call) appointment arranged for late January 2020 - the first one available!  If you look back you'll see that I first made contact with the FBU, via a form on their website, in July 2019.  Having heard nothing, I submitted again in September.

Moral of the story is, if you're anywhere close to wanting to take your SS retirement benefit, don't delay - and be prepared for a long wait!

Another quick update.  I finally had my telephone interview and am now waiting for paperwork to submit.  I was warned that, although I can have my payments backdated, it could take upto six months before they start.  They have a backlog apparently.

I also had a pleasant surprise.  My wife, who made no US social security contributions, will be entitled to her own benefit when she turns 62 - and it'll be about half mine.  Well chuffed with that!

I also had a pleasant surprise.  My wife, who made no US social security contributions, will be entitled to her own benefit when she turns 62 - and it'll be about half mine.  Well chuffed with that!

Yep.....looking forward to the same thing in 2 years when my wife hits 62. But if I have it right, it will only be half if she waits until full retirement age. If taken early I believe the benefits are reduced as they were for me. I just started SS this last summer at 62. I haven't done the math for a couple of years but I was thinking my wife might get about 1/3 of what I'm getting if she takes it (and she will) at 62. We are hoping this holds true until time to apply.

Yep.....looking forward to the same thing in 2 years when my wife hits 62. But if I have it right, it will only be half if she waits until full retirement age. If taken early I believe the benefits are reduced as they were for me. I just started SS this last summer at 62. I haven't done the math for a couple of years but I was thinking my wife might get about 1/3 of what I'm getting if she takes it (and she will) at 62. We are hoping this holds true until time to apply.

TBH, the lady on the phone gave me the impression it would be half of mine at 62 but I may have misunderstood, and I didn't pursue it because we have 4 years to go until my wife's 62.  Plus, I was delighted that she'd get anything at all.  Is there a way to calculate it for a spouse who's made no contributions?