UK Pensions Advice
An A-Z of UK Pensions

State Pensions For Britons Living Abroad

If you’re planning to live abroad when you retire, you’ll still be able to claim your State Pension. If you work and settle in another country before reaching State Pension age, you’ll also be able to get your State Pension when you retire and claim it.

Claiming your State Pension when you live abroad

You can claim your State Pension if you live outside the UK. However, you’ll only receive the yearly index-linked increases and other benefits (for example, the Christmas Bonus) if you live in the European Economic Area (EEA) or in a country with which the UK has a social security agreement.

If you live outside those areas, you won’t be entitled to the yearly index-linked increases. However, if you return to live in the UK, you’ll receive a State Pension with all of the indexation increases.

How is the State Pension paid if you live abroad?

Your State Pension can be paid into a UK bank account, or into an account in the country in which you live.

Payment into a bank account abroad

If you decide to have your State Pension paid into your bank abroad, it’ll be paid in the local currency, converted at the exchange rate on the day it’s paid. You can also receive your State Pension as a sterling cheque, which you can choose to receive either every four or every 13 weeks.

If you only spend part of the year abroad

If you divide your time between the UK and abroad you’ll have to choose which country you want your State Pension paid into. You can’t choose to have it paid in one country for part of the year, and a different country for the rest of the year.

If you decide to come back to live in the UK

In this situation, you can ask for your State Pension to be paid into a UK bank account.

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Paying Tax on your State Pension

Your tax position will depend on:

whether you’re classed as ‘non-UK resident’ for tax purposes
the country in which you’re living

If you spend part of your time in the UK and part abroad you’re likely to be classed as a UK resident. If you move abroad permanently, you’re likely to be classed as a non-UK resident.

If you are a non-resident your tax position depends on whether you live in a country with a ‘double taxation agreement’ with the UK. This means you won’t have to pay UK tax on your State Pension, but it will be taxable in the country where you live.

If you live in a country without a 'double taxation agreement', you'll have to pay UK tax and may be taxed again abroad.

It’s a good idea to get advice about paying tax on your State Pension if you live abroad. You can contact HM Revenue & Customs Centre for Non-Residents.

Who to contact before you move abroad

If you’re moving abroad to live, you’ll need to tell:

your local social security office
the HM Revenue & Customs National Insurance Contributions Office
your Tax Office
The Pension Service

You’ll also need to give them your change of address.

The Pension Service should send you a form about four months before you reach State Pension age. If you’re less than four months away from State Pension age and you’ve not received this form, it’s advisable to get in touch with the International Pensions Centre.

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