What Happens to My UK Pension if I Move Overseas? 

In the United Kingdom, there are three main types of pensions:

• State Pension: provided by the government, based on your National Insurance contributions throughout your working life. To qualify for a full State Pension, you need 35 qualifying years of National Insurance Contributions (NICs) or credits.
• Workplace Pension: provided by your employer. This can be a defined contribution scheme (where both you and your employer contribute) or a defined benefit scheme (where income is based on your salary and length of service).
• Private Pension: a pension you set up yourself, contributing directly to build your retirement pot.

Learn more about the three main types of pensions and how they work in the UK.

Relocating abroad does not mean you lose your pension, but there are some changes depending on the type of pension and the country you move to.

State Pension

You can still claim your UK State Pension if you move abroad. Payments can be made into a UK bank account or into an overseas bank account in either sterling or the local currency.

If you relocate to a country within the European Economic Area (EEA), Switzerland, or a country with a social security agreement with the UK, your State Pension will increase in line with UK rules. If you move elsewhere, your pension may be frozen at the amount you received when you left or when the last increase was applied.

Workplace and Private Pensions

You can leave your pension in the UK and it will continue to be invested. Once you reach age 55 (rising to 57 in 2028), you can begin drawing your pension, even if you live overseas.

Many pension providers can transfer payments directly into an overseas bank account, but it’s important to check for any fees, restrictions, or delays that might apply.

You also have the option to transfer your pension to a recognised overseas pension scheme, which may offer greater flexibility, particularly if you plan to retire permanently abroad. However, this decision can affect your tax position, fees, and protection of certain benefits such as guaranteed minimum pensions or protected ages.

Learn how pension contributions work to better understand your entitlements when living abroad.

• Tax: Your pension income may be subject to tax in both the UK and your new country. Double taxation agreements can help avoid being taxed twice.
• Currency & Exchange Rates: Payments made in local currency or converted from sterling can fluctuate in value, affecting your income.
• Annual Increases: Whether your State Pension increases annually depends on your new country of residence. Some locations may result in a frozen rate.
• Provider Rules & Fees: Not all pension providers will pay into overseas accounts. Check fees, restrictions, and potential loss of benefits before transferring.
• Pension Transfers: Moving your pension to a recognised overseas scheme may incur a 25% transfer charge unless certain conditions apply. The scheme must be HMRC-recognised to avoid tax penalties.

Start by checking your State Pension record and confirming how many qualifying years you have. If you don’t have enough for a full State Pension, consider making voluntary National Insurance contributions.

Notify the relevant authorities, including the International Pension Centre and HMRC, and update your pension providers with your new address.

Review whether your providers can pay into overseas accounts, what fees apply, and whether transferring would affect your benefits.

Understand how your pension income will be taxed in both the UK and your new country, taking advantage of any double taxation agreements.

Finally, plan for currency and inflation risks. Exchange rate changes can affect your retirement income, so ensure your financial planning accounts for this.

Moving abroad does not mean you have to give up your UK pension — you can still receive payments from overseas.

With the right planning and advice, you can move overseas confidently, knowing your pension will continue to support your retirement goals.

This is where professional advice makes a difference. As Independent Financial Advisers (IFAs), we help you:

• Understand how your UK pension works abroad
• Compare the options for keeping your pension in the UK versus transferring overseas
• Optimise your investment strategy for international circumstances
• Plan for a retirement that matches your new lifestyle

Managing pensions abroad may not feel urgent, but the right advice at the right time can improve long-term financial outcomes. Whether you’re relocating temporarily or permanently, our pension and retirement planning team can provide tailored, independent guidance. Get in touch for a no-obligation review and ensure your retirement plans stay secure — wherever life takes you.