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Dreaming of retiring abroad? You’re not alone. Hundreds of thousands of Brits draw their pension while living overseas — from sunny Spain to far-flung destinations like Malaysia and Thailand. But if you’ve paid into the UK system, you may be wondering: what happens to my pension when I move abroad?
This guide provides an overview of how British can access UK pensions overseas — including State Pension eligibility, private pensions, tax rules, and transfers.
The UK has a three-pillar pension system:
Whether you can claim abroad — and how much you’ll get — depends on the type of pension and the country you retire to.
Please note: we’re an expat health insurance company, not a pensions provider. This article is for general information only. For personalised advice on your pension options, we recommend speaking with a qualified financial adviser.
The UK State Pension is based on National Insurance (NI) contributions. NI is a type of tax, deducted from pay at source, or paid by the self-employed. Voluntary contributions can also be made, including from overseas. To pay National Insurance, you need a National Insurance number.
The system relies on today’s working population funding the pensions of today’s retirees.
Yes — if you’ve built up at least 10 qualifying years of National Insurance (NI) contributions. To receive the full new State Pension, you need 35 qualifying years.
From April 2026, you can no longer pay Class 2 National Insurance contributions for time abroad.
Not sure how much UK State Pension you’ll get? You can find out using the UK government’s State Pension forecast tool.
*For the 2026/27 tax year.
Foreign nationals who worked in the UK and paid National Insurance are usually eligible, even if they’re not British citizens.
National Insurance thresholds change each tax year. You can find out the earning thresholds on the HMRC’s page on current National Insurance rates and allowances.
If you’re living or working abroad, you may still be able to pay voluntary NI to protect your State Pension entitlement.
However, following April 2026 changes, voluntary contributions are significantly more expensive. Before committing, it’s worth checking your State Pension forecast and considering whether topping up your record offers good value based on your retirement plans and country of residence.
The age at which you can access the State Pension is set by UK law, and it is gradually rising:
There is no legal retirement age in the UK, and you don’t have to claim your pension as soon as you’re eligible. Deferring your claim can increase your payments. You can check the earliest age you can start receiving your State Pension here.
You can claim your State Pension anywhere in the world. Not all pensions increase each year — whether yours does depends on where you live:
As of March 2022, about 480,000 pensioners had frozen pensions; 84% were in Australia, Canada, and New Zealand.
If you return to the UK after living in a frozen country, your pension is reset to the current UK rate.
To claim your UK State Pension from abroad, you must apply — it isn’t paid automatically.
To claim your UK pension overseas, you’ll usually need to provide:
The International Pension Centre may request additional documents depending on your country of residence. It’s a good idea to gather these well in advance of your pension age to avoid delays.
Since the UK’s auto-enrolment rules were introduced between 2012 and 2018, most employees have been automatically enrolled into a qualifying workplace pension if they meet eligibility criteria (aged 22 to State Pension age, earning at least £10,000 per year, and working in the UK).
Even if you weren’t auto-enrolled, you may still have a workplace pension through a current or previous employer — either a defined benefit scheme (final salary) or a defined contribution scheme.
If you move abroad, in most cases:
Your provider will request ID, bank details, and proof of residence abroad before releasing payments.
The type of workplace pension you have affects how you’ll access it abroad:
Yes. Private pensions, including personal pensions, self-invested personal pensions (SIPPs), or stakeholder pensions, can provide additional income in retirement. Options typically include:
If you opened a Lifetime ISA aged 18–39, you can save up to £4,000 a year with a 25% government bonus.
Rules around Lifetime ISAs can vary if you’re living overseas. For details about your own account, it’s best to check directly with your ISA provider.
The Lifetime Allowance (LTA) was abolished in April 2024, and replaced with new limits:
In many cases, you can continue to pay into your pension while living abroad — but there are restrictions.
For expats planning long-term retirement overseas, it may be worth reviewing whether to keep contributing to UK pensions or set up retirement savings locally.
Rules and eligibility can vary significantly depending on your personal circumstances and your pension provider. We recommend checking directly with your provider or a qualified financial adviser if you’re unsure.
Yes, you may be able to transfer a workplace or private pension into a Recognised Overseas Pension Scheme (ROPS), also known as a QROPS.
Potential benefits of transferring your pension to an overseas scheme include reducing currency risks if it’s denominated if your local currency and simplifying managing your money by consolidating pensions. However:
The UK has social security agreements with certain countries that can:
Countries where UK state pensions are uprated include:
It’s always worth checking the latest UK government list of agreements.
Taxation is one of the most important factors to consider when drawing your pension overseas. What you pay depends on:
Without a DTA, you could pay tax twice — once in the UK and once in your country of residence.
If you move back to the UK after living overseas:
This flexibility reassures many expats who plan to return to the UK later in life.
Before you move or before you claim your pension while living abroad, you should consider:
Yes. You can claim your UK pension anywhere in the world — but the amount you receive depends on the country. If you live outside the EU, Gibraltar, Switzerland, or a country with a reciprocal agreement, your pension will usually be frozen at the rate first paid. This means it won’t increase each year with inflation. Over time, this reduces its value compared to pensions paid in uprating countries.f
Yes — but these countries do not have uprating arrangements with the UK for most claimants, so your State Pension is usually frozen at the amount it was when first paid or when you left the UK. Check the gov.uk country list for details.a
Yes — if you’ve worked in more than one country you may be entitled to pensions from each.
Time worked in EEA/Switzerland/Gibraltar or some agreement countries can help you meet the 10-year qualifying rule for the UK State Pension, but those contributions don’t increase the UK amount — they just count towards qualification.
Claims are usually coordinated through the relevant national authorities.
It depends on your circumstances.
Transfers may simplify management but can also carry risks.
Reasons to not transfer include losing UK protections, incurring the 25% overseas transfer charge, or losing favourable UK tax treatment.
Always get regulated independent financial advice and check HMRC’s ROPS list before transferring
Only if your country is one that the UK uprates (EEA/Gibraltar/Switzerland or an uprating agreement country). If you live elsewhere, your State Pension may be frozen, so inflation erodes its value over time.
If your pension is paid into a local overseas bank account, it will usually be converted from sterling (GBP) into your local currency. This exposes you to:
Some expats prefer to keep their pension paid into a UK bank account in sterling and transfer funds when needed, to control timing and rates. Others use multi-currency accounts or specialist transfer services to reduce costs.
State Pensions are usually paid every 4 weeks in arrears. Very small pensions may be paid annually.
If you change accounts, tell the Pension Service / IPC — overseas payments may require an overseas payment mandate and IBAN/BIC; there may be small admin/processing charges for overseas mandates.
If you pass away while living overseas, your pension can usually still be passed on to your beneficiaries, though the rules vary:
Always make sure your beneficiary nominations are up to date with your pension providers.
It is always advisable to seek advice from a financial advisor or your local pensions office. As a British expat, it is prudent to seek advice in all countries where you have participated in pension schemes, or consult an international advisor, to ensure you maximise the amount of pension income and avoid unnecessary tax penalties (in case, for example, if you decide to buy a house abroad). If you’re thinking of moving abroad, make sure you talk to your pension scheme or provider before you move.
When it comes to claiming your state pension, all residents must personally instigate procedures with their local pension service, as the pension isn’t issued automatically.
Sorting out pensions is just one part of retiring overseas. Healthcare is another vital piece of the puzzle.
At William Russell, we’ve been providing worldwide health cover for over 30 years, helping expats and their families to settle into their new homes. Our international health insurance covers everything from minor injuries to long hospital stays. We even offer emergency medical evacuation to patients who require emergency life or limb-saving treatment in other countries which isn’t available locally.
Speak to us today to find out more about how international health insurance can give you peace of mind in retirement.
Terms & conditions apply to our insurance products and services. You can find full details of what our plans cover (and what they don’t cover) in our plan agreements.
This article is part of our series of guides to expat life. It’s just for general information, and we don’t provide professional advice on pensions for expats (we’re an expat insurance provider). We update this article regularly to keep it useful as possible, but if you want to know more – please seek independent advice.
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