What do Israelis need to know about the American social security system
The United States social security system is comparable to Israel’s bituach Leumi (Israeli National Insurance). Social security benefits those who qualify for old age, disability, and survivor. In this article, we will explain the issue of US social security for Israelis.
Can Israelis qualify for American social security benefits?
Many US citizens and permanent residents living in Israel will likely qualify for such benefits. Even Israelis with little or no connection to the US may still qualify for some benefits based upon employment in the UnitUSiteria for US social security for Israelis.
To qualify for Social Security old-age benefits, one generally must have worked in the US under Social Security-covered employment for approximately 10 years. This entitles a person to a reduced benefit as early as 62 and full benefits between ages 66 and 67. In addition, if a Social Security-covered worker becomes disabled, even if working in Israel, they may qualify for disability benefits. Finally, if a Social Security-covered worker dies, the spouse and minor children may qualify for Social Security survivor benefits.
The social security payment
The benefits generally depend upon the length of work under social security-covered employment and the wage level. The longer one is employed, the higher the wage determines the benefit amount. The average Social Security old age benefit is $1368/month. The maximum benefit is currently $2687/month.
A significant benefit for Israelis with sufficient social security-covered employment is that social security benefits are skewed toward lower-income workers. This doesn’t mean Israelis are necessarily low-wage earners. Instead, the formula social security uses to determine benefits theoretically is based upon 40 years of covered employment. For those with significantly fewer years of covered employment, even at high wages, the formula makes it appear the worker was a low-wage earner over their entire career. Because of that, the formula provides a proportionally richer benefit.
Another critical issue for older Israelis who seek to immigrate to the United States is that one who qualifies for Social Security benefits (one who worked for 10 years under Social Security-covered employment) automatically qualifies for Medicare coverage at age 65. Medicare is the US national health insurance program for the elderly. Many who immigrate to the US at an older age have little if any, social security-covered employment. Thus, they have no health care coverage for several years after immigration. The only alternative is for them to purchase health insurance in the private market, a costly proposition for someone at an advanced age.
Contact us
Our law office can assist Israelis with questions about Social Security and Medicare. Contact us, and we will be happy to help.