Living Abroad Tips

Does my UK state pension increase if I live abroad?

Alex Beaney

26.09.24

Read time 2 minutes

If you’re retired or retiring soon, you might plan on moving from the UK and spending your golden years someplace else. This is the perfect time to enjoy yourself without having to worry about your career or finding a job.

However, you might be wondering - does my UK state pension increase if I live abroad? We’ve created a guide to help you find all the answers in one place, including which countries allow pension increases and which don’t.

We’ll also point out a cost-effective way to manage your money across borders. The Wise account from the money services provider Wise allows you to send money to 160+ countries at the mid-market exchange rate with low, transparent fees*.

Learn more about the Wise account

What happens to my UK state pension if I move abroad?¹

As long as you’ve paid enough National Insurance contributions, you can access your UK state pension in another country. In order to do so, you need to either contact the International Pension Centre or send them an international claim form.

Your pension will then either be paid into a UK bank or a bank in the country you’re living in. If you choose the latter, you’ll then get paid in that country’s local currency. This means that you might not get the same amount of money each month due to currency fluctuations.

Does my UK state pension increase if I live overseas?²

We’ve come to the big question - does my UK state pension increase if I live abroad? The answer depends on where you plan on moving to.

Your pension will increase each year if you move to the EEA, Gibraltar, Switzerland or certain countries that have a social security agreement with the UK.

Countries with pension increases

If you move to Gibraltar, Switzerland or any country in the EEA, you will receive annual UK state pension increases. The same will happen when moving to a country that has a social security agreement with the UK, except for Canada and New Zealand.²

Your pension will increase if you choose to live in one of the following countries:³

Barbados
Bermuda
Bosnia and Herzegovina
Guernsey
the Isle of Man
Israel
Jamaica
Jersey
Kosovo
Mauritius
Montenegro
North Macedonia
the Philippines
Serbia
Turkey
USA

Countries without pension increases

Your UK state pension will be frozen if you move to any country other than those listed above. Remember that although Canada and New Zealand have social security agreements with the UK, you can’t get a yearly increase in your UK state pension there.

How to check if your pension will increase abroad

In order to know whether your UK state pension will increase overseas, make sure you check for any updates to the list of countries that allow this. You can find it on the UK government’s website.

You can also get in touch with the International Pension Centre and have them tell you how moving abroad might affect your UK state pension.

Make the most of your pension with Wise

If you decide to retire abroad, you can still receive your UK state pension. In fact, there’s a lengthy list of countries where your pension will continue to increase each year.

And for managing your UK state pension overseas, you can rely on the Wise account. With Wise, you can send money to and from the UK for low, upfront, transparent fees*.

Also, if you order the Wise card for a one-time fee of £7, you can spend like a local in 150+ countries. Each time you use your card, your pounds are auto-converted at the mid-market exchange rate. You’ll just pay a small conversion fee, or no fee if you already have the currency in your Wise account*.

Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.

Sources used:

Gov.uk - Claim state pension abroad
Gov.uk - How your pension is affected
Gov.uk - Countries where we pay an annual increase in the State Pension

Sources last checked on date: 11-Sep-2024

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.