United States
Worked in United States? Any pension you built up here is yours to keep and can usually be paid to you abroad — but you have to claim it; it won't start automatically. The full state pension age is 67, with early access from 62. On totalization, United States has bilateral totalization agreements, so the years you worked here may combine with other countries you've worked in. Below is United States's system at a glance and what expats should check.
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Overview
The United States operates a three-pillar hybrid public-private retirement system.
The first pillar is Social Security (Old-Age, Survivors, and Disability Insurance — OASDI), a mandatory pay-as-you-go defined benefit program established by the Social Security Act of 1935 (42 U.S.C. Chapter 7), governed by the Social Security Administration (SSA), an independent federal agency. Workers earn up to four credits per year and need 40 credits (approximately 10 years of covered work) to qualify for retirement benefits. Benefits are calculated using the highest 35 years of indexed earnings and are adjusted annually by a cost-of-living adjustment (COLA) tied to the CPI-W; the 2026 COLA is 2.8%. The Social Security Fairness Act, signed January 5, 2025, repealed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), restoring full benefits retroactive to January 2024 for approximately 3.2 million affected beneficiaries.
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The second pillar consists of employer-sponsored plans. Private-sector workers primarily use defined contribution plans such as 401(k) and 403(b) plans. Federal civilian employees hired after December 31, 1983 are covered by the Federal Employees Retirement System (FERS), a three-tier system combining a basic defined benefit annuity, Social Security, and the Thrift Savings Plan (TSP). Employees hired before 1984 who did not switch are covered by the Civil Service Retirement System (CSRS), a standalone defined benefit plan not integrated with Social Security. The SECURE 2.0 Act (2022) raised the Required Minimum Distribution (RMD) age to 73 and introduced enhanced catch-up contribution provisions for ages 60–63.
The third pillar is individual voluntary savings through Traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs. For 2026, the 401(k) employee deferral limit is $24,500 (up from $23,500 in 2025), and the IRA contribution limit is $7,500 (up from $7,000 in 2025). The US has 30 active totalization agreements preventing dual Social Security taxation for workers dividing careers between the US and partner countries. Social Security is payable to most countries worldwide, with payments indexed to US CPI-W regardless of the beneficiary's country of residence.
~43% for medium earners (Social Security only at FRA, 2026 SSA publication); ranges from ~79% for very low earners to ~28% for maximum earners. OECD gross replacement rate (mandatory schemes only) approximately 38–43% for average earner.
Pillar 1 — Social Security (OASDI): Mandatory pay-as-you-go defined benefit program. Covers private-sector workers, self-employed, most federal workers hired after 1983, and many state/local employees. Benefits based on highest 35 years of indexed earnings. COLA-adjusted annually (2.8% for 2026). | Pillar 2 — Employer-sponsored plans: 401(k)/403(b) defined contribution plans for private/non-profit sector; Federal Employees Retirement System (FERS) for federal employees hired after 1983 (basic annuity + Social Security + TSP with up to 5% agency match); Civil Service Retirement System (CSRS) for pre-1984 federal hires (closed, standalone DB plan, no Social Security integration); state/local government pension plans vary widely. | Pillar 3 — Individual voluntary savings: Traditional IRA, Roth IRA, SEP IRA, SIMPLE IRA, taxable brokerage accounts, and individual annuities. 2026 IRA limit: $7,500 (under 50) / $8,600 (50+).
Mixed Bismarckian/voluntary — mandatory earnings-related public PAYG (Social Security) combined with voluntary employer-sponsored defined contribution plans and individual retirement accounts
Employee
7.65
Employer
7.65
Self-Employed
15.3
Notes
FICA total: 7.65% employee (6.2% OASDI + 1.45% Medicare) + 7.65% employer match = 15.3% combined. OASDI applies only up to the taxable wage base ($176,100 in 2025; $184,500 in 2026). Medicare applies to all wages with no cap. Additional 0.9% Medicare surtax on employee wages above $200,000 (single) / $250,000 (married filing jointly) — no employer match on surtax. Self-employed pay the full 15.3% (12.4% OASDI + 2.9% Medicare) via SECA, but may deduct half as a business expense. Totalization agreement exemptions may reduce or eliminate self-employment tax for US persons residing in agreement countries.
Common questions
What is the retirement age in United States?
The full state pension age in United States is 67. Early retirement may be possible from 62. Deferring can raise your pension up to age 70.
Can I claim a United States pension if I live abroad?
Yes. A pension you've earned in United States stays yours wherever you retire, and can usually be paid into an overseas account once you reach pension age. It won't start automatically, though — you need to claim it, typically a few months in advance, through United States's pension authority.
Do totalization agreements affect my United States pension?
United States has bilateral social-security (totalization) agreements. These can let you combine the years you worked in United States with years in partner countries to meet a minimum qualifying period, so short stints aren't wasted. Which partners and rules apply depends on your own work history.
How is the pension system structured in United States?
Mixed Bismarckian/voluntary — mandatory earnings-related public PAYG (Social Security) combined with voluntary employer-sponsored defined contribution plans and individual retirement accounts Pillar 1 — Social Security (OASDI): Mandatory pay-as-you-go defined benefit program. Covers private-sector workers, self-employed, most federal workers hired after 1983, and many state/local employees. Benefits based on highest 35 years of indexed earnings. COLA-adjusted annually (2.8% for 2026). | Pillar 2 — Employer-sponsored plans: 401(k)/403(b) defined contribution plans for private/non-profit sector; Federal Employees Retirement System (FERS) for federal employees hired after 1983 (basic annuity + Social Security + TSP with up to 5% agency match); Civil Service Retirement System (CSRS) for pre-1984 federal hires (closed, standalone DB plan, no Social Security integration); state/local government pension plans vary widely. | Pillar 3 — Individual voluntary savings: Traditional IRA, Roth IRA, SEP IRA, SIMPLE IRA, taxable brokerage accounts, and individual annuities. 2026 IRA limit: $7,500 (under 50) / $8,600 (50+). It includes 6 schemes in our directory.