Guide On UK Pensions For British Expats

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.

In this article on UK pensions

How does the UK pension system work?
Am I eligible for the UK State Pension if I live overseas?
How do I claim my State Pension from abroad?
Will I pay tax on my pension abroad?
FAQs on UK pensions abroad

Smiling female friends rowing across a lake

Understanding the UK pension system for expats

How does the UK pension system work?

The UK has a three-pillar pension system:

State Pension – based on your National Insurance contributions
Workplace pensions – provided by employers, often via auto-enrolment
Private pensions and ISAs – such as self-invested personal pensions (SIPPs), stakeholder pensions, or Lifetime ISAs

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

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.

Am I eligible for the UK State Pension if I live overseas?

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.

The current weekly rate is £230.25*
If you have gaps, you may be able to pay Class 2 or Class 3 voluntary National Insurance contributions to boost your record, even while living abroad

Not sure how much UK State Pension you’ll get? You can find out using the UK government’s State Pension forecast tool.

*Data correct as of September 2025

Do foreigners qualify for the UK State Pension?

Foreign nationals who worked in the UK and paid National Insurance are usually eligible, even if they’re not British citizens.

When do I pay National Insurance as a British expat?

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.

Thinking about packing your bags and moving somewhere new?

Discover our full guide for British expats moving overseas

How old do I have to be to get the UK State Pension?

The age at which you can access the State Pension is set by UK law, and it is gradually rising:

The State Pension age (SPA) is currently 66
It rises to 67 between 2026–2028, and is set to rise to 68 between 2044–2046 (subject to review)
Workplace and private pensions can usually be accessed from 55, but this rises to 57 from 6 April 2028.

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.

Will my UK State Pension increase if I retire abroad?

You can claim your State Pension anywhere in the world. Not all pensions increase each year — whether yours does depends on where you live:

Uprated annually (in line with inflation) — if you live in the EEA, Gibraltar, Switzerland, or in countries with a social security agreement covering uprating
Frozen (no annual increases) — if you live in countries like Australia, Canada, or New Zealand, your pension will stay fixed at the rate first paid

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.

What is dual citizenship and how does it work?

Our guide covers everything you need to know about dual citizenship

How do I claim my State Pension from abroad?

To claim your UK State Pension from abroad, you must apply — it isn’t paid automatically.

How to claim your State Pension overseas

Check your forecast — confirm your National Insurance record and amount.
Contact the International Pension Centre (IPC) — usually 4 months before reaching State Pension age. They provide forms and guidance.
Choose your payment account — UK or overseas account. For overseas accounts, you’ll need IBAN/BIC details. Payments can be in local currency (subject to exchange rates) or sterling.
Notify HMRC of your residency — tax treatment depends on your country of residence and whether a Double Taxation Agreement (DTA) exists.

How will my pension be paid?

Usually paid every 4 weeks in arrears.
Overseas claimants may get paid every 4 or 13 weeks depending on circumstances.
Smaller pensions may be paid annually.

What paperwork do I need to claim my pension abroad?

To claim your UK pension overseas, you’ll usually need to provide:

Your National Insurance number
Proof of identity (passport, birth certificate)
Proof of residence abroad (such as visa, residence permit, or utility bill)
Overseas bank details (IBAN and BIC/SWIFT codes)

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.

Workplace pensions abroad

What happens to my workplace pension if I move abroad?

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:

You can usually keep your workplace pension and draw benefits overseas.
Most providers allow payments to overseas bank accounts (using IBAN/BIC/SWIFT details).
If paid in sterling, you typically avoid conversion fees (though some providers may charge admin costs).
If paid in local currency, exchange rates and conversion charges apply.
Tax treatment depends on your country of residence and whether a Double Taxation Agreement (DTA) exists with the UK.

Your provider will request ID, bank details, and proof of residence abroad before releasing payments.

What’s the difference between defined benefit and defined contribution pensions abroad?

The type of workplace pension you have affects how you’ll access it abroad:

Defined benefit (DB) schemes pay a guaranteed income for life, usually linked to your salary and years of service. These often can’t be transferred abroad but can usually be paid into an overseas bank account.
Defined contribution (DC) schemes depend on how much you and your employer contributed and how your investments performed. You have more flexibility with DC pensions, including potential transfers to overseas schemes.

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Private pensions abroad

Can I access my private pension if I live abroad?

Yes. Private pensions, including personal pensions, self-invested personal pensions (SIPPs), or stakeholder pensions, can provide additional income in retirement. Options typically include:

Taking up to 25% tax-free lump sum (new limits apply)
Using the rest to buy an annuity for guaranteed income
Keeping funds invested for income drawdown with flexible, taxable lump sums

Can I access my Lifetime ISA abroad?

If you opened a Lifetime ISA aged 18–39, you can save up to £4,000 a year with a 25% government bonus.

Funds can be withdrawn after age 60, or for a first home
Lifetime ISAs can form part of retirement planning, but withdrawals rules differ if you live abroad

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.

Pension allowance reforms: what changed in 2024–25?

The Lifetime Allowance (LTA) was abolished in April 2024, and replaced with new limits:

Lump Sum Allowance (LSA): £268,275 — usually the maximum tax-free cash
Lump Sum & Death Benefit Allowance (LSDBA): £1,073,100
Overseas Transfer Allowance: £1,073,100 — affects transfers to overseas schemes

Can I keep paying into my UK pension while living abroad?

In many cases, you can continue to pay into your pension while living abroad — but there are restrictions.

If you move abroad permanently and have no UK taxable income, your annual allowance for UK pension contributions may be limited.
Some providers won’t accept contributions once you become non-UK resident.
If you’re still employed by a UK company while abroad, contributions may continue as normal.

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.

Transferring UK pensions overseas

Can I transfer my UK pension to an overseas scheme?

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:

Not all overseas schemes are recognised—always check the official HMRC ROPS list
An Overseas Transfer Charge of 25% may apply if the transfer doesn’t meet exemption rules
Transfers can be complex and costly — independent regulated advice is strongly recommended

Which countries have pension agreements with the UK?

The UK has social security agreements with certain countries that can:

Help you qualify for the State Pension if you have gaps
Allow your pension to be uprated annually

Countries where UK state pensions are uprated include:

EEA countries
Gibraltar
Switzerland
Countries with a reciprocal agreement that includes uprating (e.g. the USA, Mauritius, the Philippines, Barbados).

It’s always worth checking the latest UK government list of agreements.

Will I pay tax on my pension abroad?

Taxation is one of the most important factors to consider when drawing your pension overseas. What you pay depends on:

The type of pension
The tax rules of your new country
Whether the UK has a Double Taxation Agreement (DTA) with that country

Without a DTA, you could pay tax twice — once in the UK and once in your country of residence.

Expat tax matters can get tricky

Here’s everything you need to know about taxes for expats

What happens to my pension if I return to the UK after living abroad?

If you move back to the UK after living overseas:

Your State Pension will be uprated to the current UK level, even if it was frozen while you were abroad.
Workplace and private pensions can continue without interruption — though you may want to review tax implications.
You can usually resume UK pension contributions if you’re working again.

This flexibility reassures many expats who plan to return to the UK later in life.

Checklist: Claiming your UK Pension abroad

Before you move or before you claim your pension while living abroad, you should consider:

Checking your UK State Pension forecast
Confirming whether your destination has uprating or a frozen pension policy
Finding out about tax treaties to avoid double taxation
Deciding whether to keep or transfer workplace/private pensions
Checking your National Insurance contribution gaps and top up if eligible

How do you get medication when living overseas?

Read our guide on how to use pharmacies abroad

FAQs – Common expat pension questions

Can I claim my UK pension if I live outside the EU?

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

Can I still get my UK pension in Canada / Australia / New Zealand?

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

Can I receive UK pensions from two countries?

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.

Should I transfer my UK pension to an overseas scheme (ROPS)?

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

Will my pension increase with inflation if I live abroad?

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.

How does currency exchange affect my UK pension abroad?

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:

Exchange rate fluctuations — the value of your monthly pension may rise or fall depending on currency movements.
Conversion fees — banks and providers may charge for international transfers.

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.

How often will I be paid and what if I change bank accounts?

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.

What happens to my pension if I die abroad?

If you pass away while living overseas, your pension can usually still be passed on to your beneficiaries, though the rules vary:

State Pension — some spouses or civil partners may inherit part of your State Pension, depending on your NI record and when you reached State Pension age.
Workplace and private pensions — most allow you to nominate beneficiaries. Your chosen person may receive a lump sum or a continuing income.
Tax treatment — this depends on both UK rules and the laws of your country of residence. Double Taxation Agreements may reduce inheritance tax exposure.

Always make sure your beneficiary nominations are up to date with your pension providers.

Applying for your UK pension when you are retiring abroad

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.

Safety is one of the most important considerations

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Wherever you go, go with total peace of mind

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.

Looking for expat health insurance before your retire abroad?

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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.

UK Pensions Abroad: What British Expats Need To Know