State Pension If You Live Abroad

Can I Claim UK State Pension Abroad?

Yes. You can claim your UK State Pension while living in any country in the world, as long as you've built up enough qualifying years (minimum 10 years).

Key points:

• You can claim State Pension even if you've never lived in the UK (as long as you paid enough NI)
• You can claim while living permanently abroad
• You can claim if you move abroad after retiring
• Payment can be made to a UK or overseas bank account
• You can choose to be paid in pounds sterling or local currency

Uprated vs Frozen Pensions

The critical issue is whether your State Pension will receive annual increases (uprating) or stay frozen at the rate when you first claimed.

Uprated Pensions (You Get Annual Increases)

Your State Pension will continue to increase each year if you live in:

• European Economic Area (EEA) - EU countries plus Iceland, Liechtenstein, Norway
• Switzerland
• Gibraltar
• Countries with social security agreements that include uprating:
  • Barbados
  • Bermuda
  • Bosnia and Herzegovina
  • Israel
  • Jamaica
  • Kosovo
  • Mauritius
  • Montenegro
  • North Macedonia
  • Philippines
  • Serbia
  • Turkey
  • USA

Frozen Pensions (No Annual Increases)

Your State Pension will be frozen at the rate when you first claim it (or when you moved abroad, if later) if you live in countries without uprating agreements, including:

• Australia - One of the largest affected populations
• Canada
• South Africa
• New Zealand
• India
• Pakistan
• Most African countries
• Most Asian countries
• Most countries in the Americas (except USA, Barbados, Bermuda, Jamaica)

Why Are Some Pensions Frozen?

The UK government only uprates State Pensions abroad if:

• There's a legal requirement to do so (EU/EEA law, bilateral social security agreements)
• No such requirement exists for most countries

Approximately half a million UK pensioners live in countries where their pensions are frozen. Campaigns to change this policy have been ongoing for decades.

Building Up Your State Pension While Abroad

Working Abroad for a UK Employer

If you work abroad for a UK employer:

• You continue to pay UK National Insurance (Class 1)
• These years count as qualifying years
• No action needed - it's automatic

Working for a Foreign Employer or Self-Employed Abroad

If you work abroad for a non-UK employer or are self-employed abroad:

• You typically stop paying UK National Insurance
• These years won't count as qualifying years
• You can pay voluntary National Insurance to maintain your record

Voluntary Contributions While Abroad

You can pay voluntary NI to fill gaps created by living/working abroad:

Current rates (2025/26):

• Class 2: £3.50/week (£182/year) - For people who recently lived or worked in the UK
• Class 3: £17.75/week (£923/year) - For everyone else

Important change from April 2026:

• Class 2 voluntary contributions will no longer be available for periods abroad
• Only Class 3 will be available
• You must have lived in the UK for at least 10 years to qualify for Class 3 voluntary contributions

Who Should Pay Voluntary NI While Abroad?

Consider paying voluntary contributions if:

• You don't have 35 qualifying years yet
• You plan to return to the UK to retire (or retire to a country with uprating)
• You're eligible for Class 2 (much cheaper than Class 3)
• You're building up to the 10-year minimum

Don't pay voluntary NI if:

• You already have 35 qualifying years (won't increase your pension)
• You plan to retire in a country with frozen pensions (the extra pension won't increase, making the ROI poor)
• You're unlikely to reach the 10-year minimum
• You'll be covered by the host country's social security system instead

How to Claim State Pension Abroad

Claiming from Overseas

To claim your State Pension while living abroad:

1. 4 months before State Pension age: You can claim
   • Call the International Pension Centre: +44 (0)191 218 7777
   • Or write to: International Pension Centre, Mail Handling Site A, Wolverhampton WV98 1LW
2. Provide required information:
   • National Insurance number
   • Proof of identity (passport)
   • Overseas address
   • Bank details (UK or overseas account)
3. Choose payment frequency:
   • Every 4 weeks
   • Every 13 weeks
4. Choose currency:
   • Pounds sterling (GBP)
   • Local currency (exchange rate on payment date)

After You Retire Abroad

If you're already claiming State Pension in the UK and then move abroad:

• Contact the International Pension Centre
• Provide your new address
• They'll update your payment details
• Your pension may be frozen from the date you leave the UK (depending on destination country)

Payment and Currency

Bank Accounts

State Pension can be paid to:

• A UK bank account
• An overseas bank account

If paid to an overseas account, you can choose:

• Sterling: Paid in GBP (your bank converts it, bank charges may apply)
• Local currency: DWP converts at the rate on payment day (no bank conversion fees)

Exchange Rate Risk

If you choose local currency payment:

• The amount varies depending on exchange rates
• Paid at the Citibank rate on payment day
• Protects you from bank conversion fees but exposes you to rate fluctuations

Bank Charges

• DWP doesn't charge to send payments abroad
• Your bank may charge to receive international payments
• Check with your bank about receiving regular GBP transfers

Tax on State Pension Abroad

UK Tax

• State Pension is taxable UK income regardless of where you live
• If you're a UK tax resident, you pay UK tax on it
• If you're non-resident for tax, it may be taxed differently (often exempt from UK tax)

Tax in Your Country of Residence

• Most countries tax foreign pensions, including UK State Pension
• Some have double taxation agreements with the UK to prevent being taxed twice
• Check your host country's rules

Getting Tax Advice

Tax on foreign pensions is complex. Consider:

• Consulting a tax advisor in your country of residence
• Checking if a double taxation agreement applies
• Understanding your UK tax residence status

Returning to the UK

If Your Pension Was Frozen

If you return to live in the UK after having a frozen pension abroad:

• Your pension will be uprated to the current rate from when you return
• You'll receive the same amount as someone who stayed in the UK
• However, you don't get back-paid for the years it was frozen

Example:

• You claimed £200/week in 2015 and moved to Australia (frozen)
• You return to UK in 2025
• Full State Pension is now £230.25/week
• Your pension increases to £230.25/week from your return date
• But you don't receive the difference from 2015-2025

If Your Pension Was Uprated

If your pension was uprated while abroad (e.g., living in EU), returning to the UK changes nothing - you continue to receive the full uprated amount.

Social Security Agreements

What Are They?

The UK has bilateral social security agreements with some countries to:

• Allow you to combine NI contributions from both countries
• Prevent being taxed twice on the same income
• Sometimes include pension uprating

Countries with Agreements

The UK has agreements with around 30 countries, including:

• EU/EEA countries
• USA, Canada (no uprating in Canada)
• Australia, New Zealand (no uprating)
• Jamaica, Barbados, Mauritius (with uprating)

What agreements cover:

• Totalization: Combining contribution periods from both countries to meet minimum requirements
• Export: Paying your pension if you live in the other country
• Uprating: Annual increases (only in some agreements)

How to Use Social Security Agreements

Contact the International Pension Centre to find out if you can combine contributions from both countries to reach the 10-year minimum.

Special Situations

Frequent Travelers

If you spend time in both the UK and abroad:

• Your pension uprating depends on where you're ordinarily resident
• Usually determined by where you spend most of the year
• Moving between countries can affect uprating - get advice

Crown Servants and Armed Forces

If you work abroad for the UK government or armed forces:

• You continue to pay UK NI
• Your pension is uprated regardless of where you live

Receiving State Pension as a Non-UK National

You don't have to be a British citizen to claim UK State Pension. If you worked in the UK and paid NI:

• You can claim State Pension based on those contributions
• Uprating depends on which country you live in (same rules as UK citizens)

Practical Tips for Expats

Before You Move Abroad

1. Check your State Pension forecast: gov.uk/check-state-pension
2. Check if the destination country has uprating: This could be worth tens of thousands over retirement
3. Consider voluntary contributions: If you'll have gaps while abroad
4. Plan for frozen pensions: If moving to a non-uprating country, factor this into retirement planning

While Living Abroad

1. Pay voluntary NI if beneficial: Especially if eligible for Class 2 (ending April 2026)
2. Keep UK address updated: With the International Pension Centre
3. File annual life certificates: Required by DWP to continue payments
4. Monitor exchange rates: If receiving payments in local currency

Planning to Return

1. Notify International Pension Centre: Of your return date
2. Provide UK address: For resumed payments
3. Expect uprating: If your pension was frozen

Important Contacts

International Pension Centre

Phone: +44 (0)191 218 7777
Textphone: +44 (0)191 218 7280
Monday to Friday, 8am to 6pm (UK time)

Address:
International Pension Centre
Mail Handling Site A
Wolverhampton
WV98 1LW
United Kingdom

Future Pension Centre (Before Claiming)

Phone: 0800 731 0175 (from UK)
Phone: +44 (0)191 218 3600 (from abroad)