Retiring in Portugal? Don't Make This Mistake

If You are an American....

Denise and I both turn 70 this year. Me in February … her next month. We both decided to postpone collecting Social Security until age 70. Getting it set up for me was fairly straightforward. For Denise, not so much…

Because I Monitor Our Investments

If you are a regular reader, you know that I love spreadsheets. My love of spreadsheets led me to create a Google Sheet called “How Long Can We Live?” A more accurate title would be, “When Will We Run Out of Money?” I first created this spreadsheet when I was calculating at what age I could retire. Of course, it included our expected Social Security income. It also includes our investments and Denise’s pension. It assumed a modest investment return of 4%, annual inflation at 3%, and an increase of SS and Denise’s pension at 1%.¹ It also included the good old 4% rule. By comparing the value in F10 to that in F14 (for example) I could see if we were living “within our means”. Finally, my goal was to not run out of money until we were 100.²

I’ve removed our figures…if you want the spreadsheet with calculations email me.

Unfortunately, my love of spreadsheets has distracted me from the point of this post. Which is ... it is best to create an online Social Security account before you leave the US! You see, I created an online account many years ago so I could update my beloved spreadsheet. Denise did not. (Or if she did, she forgot her passcode.) Instead, we took the estimates from the Social Security Statement which she periodically received in the mail.

My Experience

So when it was time for me to apply for Social Security it was a relatively straightforward process. In November, 4 months before I wanted to start receiving benefits, I went online and applied. I noted that I lived outside of the US and selected to have the money deposited directly to our Portuguese bank account. About 4 weeks later I checked my application online and it reported that it was assigned to the US Embassy in Lisbon. It remained in that status for several months.

In late January, the embassy representative called. I answered a few questions, and I was good to go. ³

The US Embassy website shows the number they never answer.

Denise’s Experience

Denise’s experience has been a bit different.

• During the COVID lockdown in Portugal, she attempted to create the account or recover her password (we can’t remember which). At that time, SS sent a verification code by mail. It went to the address on file with Medicare. Medicare had our old California address. The code was sent to California and then forwarded to Florida. (A friend’s address for forwarded mail.) However, by the time it arrived in Florida, it had expired. She put the issue aside.

• More recently she called SS in the US. They couldn’t help her because she had forgotten her password. They suggested she come into the US SS office. Okay, she was going to the US for a wedding in January. Unfortunately, the only appointments available were in February.

• She tried calling the Embassy phone number above. No answer. She then emailed the Embassy. No response.

• After two weeks another call to the US SS office … this time to a supervisor. She said a representative would call her to set up the account. She received an email confirming the phone appointment. Unfortunately, US representatives do not call foreign phone numbers so the appointment did not happen.

• Another call to the US, this time the representative said, “I will delete your account and we can start fresh”. We did, but the new verification system requests a “Backup code” that is texted to your US phone number.⁴ Her phone number on file is Portuguese. That didn’t work!

• Another email to the SS section of the US Embassy. No response.

• Last week a phone call to the Embassy’s main number. Oh my goodness, they answered! On the third ring!!!!

The receptionist was very efficient. She explained that Denise could come in any day and apply in person. No appointment is required! Just show up….

As I Write This

So where are we? On Friday, Denise did receive an email from the SS office of the Embassy. The email says they will call her, but there is no specific date. She waits. Fortunately, we have a trip planned to Lisbon in early April. If the long-awaited call has not occurred by 4 April, Denise will go to the Embassy and apply in person.

So what is the point of this post? There is a point …

1. If you have not yet left the US, establish your online account with SS before you leave the country. Make sure you know your password. (Perhaps tattoo it on the bottom of your foot.) 120 days before you elect to receive SS, go online and complete the application.⁵

2. If you have not established your account, your best bet is a trip to Lisbon. Hopefully, you live nearby or have a trip planned.

We are fortunate. Social Security is not our sole retirement income. But I realize many people are not that fortunate. And regardless, no one wants the frustration of unanswered phone calls or emails.

Perhaps you have had a much better experience with SS in the States or the US Embassy than we have. If so, please leave a comment below so others can learn from your experience.

Clearly, we did not handle this in the best way possible.

Esperamos, esperamos,⁶ até logo,

Nanc

UPDATE: Monday at 17:30 the Embassy called Denise. In just a few minutes and with one additional email, everything was set to begin in April. A great lesson for all of us that move abroad. While we sometimes don’t know all the correct steps and as a result are frustrated by the process…it all works out in time.

1. I realize Social Security and military pension increases are tied to the US COLA. However, I wanted to be very conservative. Most years our investments return more than 4%, and taken over many years, inflation is less than 3%. Again, when making such projections we are always very conservative.

2. I’m not at all sure I want to live to 100. But my grandparents died in their 60’s and my mother lived into her 90’s, so who knows?

3. Because the call did not occur till the last week of January, I did not receive my first SS check until 1 March. I then received March’s payment on 3 March.

4. Before leaving the States I thought about “parking” our phone numbers. Many services not only save your number but also allow text messages while overseas. That is helpful for 2-step credit card verification and for situations like this one. I wish I had spent the $5/month to do this…but I did not.

5. A friend received a phone call from the Embassy within one week of it being assigned. I believe the US embassy has different representatives assigned to the initial of your last name. Her last name begins with an “N”. It would appear that the “N” person is more efficient than the “W” or the “B” person.

6. “We wait, we hope”? Funny that word can mean both. And in this case, that’s perfect!