The Social Security Fairness Act, passed in early 2025, is a landmark move aimed at rectifying longstanding inequities in how Social Security benefits are calculated for individuals with foreign pensions. Previously, the Windfall Elimination Provision (WEP) often led to reduced US Social Security benefits for individuals who had earned pensions from non-US governments, including the UK. This resulted in a significant financial disadvantage for many. 

The new legislation removes this penalty for individuals with a UK State Pension, ensuring they receive their full US Social Security entitlement without reductions. This change marks a major step toward fairness and acknowledges the contributions these individuals have made across both systems. 

This update is particularly impactful for two key groups: 

1. Brits Living and Working in the US: British nationals who have worked in the US long enough to qualify for Social Security benefits, but who also receive a UK State Pension, no longer have to worry about their US benefits being reduced. 

1. US Expats in the UK: Similarly, US citizens who have worked in the UK and contributed to the UK State Pension system will benefit when claiming Social Security in the US. 

For both groups, this change means increased financial stability in retirement and recognition of their dual contributions. 

Key Implications 

This development demonstrates a growing recognition of the global nature of workforces and the importance of ensuring fair treatment across borders. The change will have a positive ripple effect on the lives of thousands of retirees who have contributed to multiple systems during their careers. It also highlights the importance of continued advocacy for fair treatment in international financial and social security arrangements. 

The Social Security Fairness Act is a victory for fairness and a win for individuals dealing with retirement across the US and UK. This change not only enhances financial outcomes for retirees but also sets a precedent for addressing similar inequities in other international agreements. 

If you are a Brit living in the US or a US expat in the UK, now is the time to review your retirement plans and understand how these changes will impact you. Speak to one of our advisers today to ensure you are maximising the benefits of this legislative update.