Retire to the Philippines and Succeed

Will your disability be payable in the Philippines? 

(Updated 27 February 2020)

The answer to this frequent question is a definite yes, no or maybe.  I hate to sound flippant but this is one of those questions that can only be answered with another question.

What do you mean by Social Security Disability?

I get a lot of questions on this subject because while Social Security Disability payments are quite common, and they are supposed to cover the expenses of folks who are permanently disabled, they are very, very hard to live on in the USA.

The average disability monthly payment will support most people who live in the Philippines.  But there are some major factors to consider:

Will your disability be payable in the Philippines?

There are typically two categories of disability payments from the SSA (Social Security Administration)  — Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI).

SSDI _IS_ payable in the Philippines.

SSI is _NOT_ payable in the Philippines.

So before you make your plans to move to the Philippines and live off your disability payments, you better check very closely to make sure your payments will continue should you move here.

Be very careful about this because there are many folks on SSDI who also receive a monthly SSI supplement.  If you leave the USA for more than 30 days, your SSI supplementary payments will stop, and they can’t ever be restarted until you have been back in the USA for 30 days or more.

So your SSDI payments can continue if you move to the Philippines, but if you also have an SSI component to your payment, it’s going to stop 30 days after you leave the USA.

So you may well wind up with a greatly reduced payment.

Can you then actually receive that payment?

The Social Security Administration contracts with several commercial banks to send overseas payments to overseas recipients.

But don’t think you are going to receive a check in your mailbox.

Americans receiving government pensions may have those pensions direct deposited to their Philippine bank accounts.  Participating banks include the following followed by the fees each charges per direct deposit to a U.S. dollar account in the Philippines.

Allied Banking Corporation – $3.00
Bank of the Philippine Islands (BPI) – $3.00
Development Bank of the Philippines (DBP) – $5.00
Land Bank of the Philippines – $5.00
Maybank – $3.00
Philippine Veterans Bank (PVB) – $3.00
China Bank – $3.00
RCBC – $3.00 to $5.00
Bank of Commerce (BOC) – $5.00 to $7.00
Manila Bank – $1.00
Security Bank – $5.00
United Coconut Planters Bank (UCPB) – $4.00 to $6.00
Metrobank – $3.00
Philippine National Bank – $7.00

The banks with variable fees charge more for larger direct deposits.

How Do You Start Direct Deposit of your Benefits?

If you’d like to sign up for direct deposit in the Philippines go to the bank you have chosen, open a US Dollar account and ask for the direct deposit enrollment form.

The bank will help you fill it out and the bank will submit the form to Social Security representatives in Manila.

The account into which the funds are paid must be an individual account.  For example, you can not deposit into a joint account with your wife or a child or caregiver.

A Social Security concern is that benefits may continue to be paid and spent long after the pensioner has expired.

So you CAN receive your benefits by direct deposit in the Philippines, but it is not necessarily easy.

For an authoritative Reading On Receiving benefits overseas, you may find this

Payments Outside the United States tool useful

 

So Now You Know More About Will your disability be payable in the Philippines?