How to Claim Your UK State Pension While Living Abroad

Stephen James Mitchell
Jul 29
5 min read

Updated: 4 days ago

The UK State Pension remains one of the most reliable retirement income sources available to British citizens, and it is payable even if you move overseas. For the growing number of UK nationals living abroad—whether for work, family, or retirement—understanding how the State Pension is paid, how much you’ll receive, and how it may be affected by international rules is essential.

This guide provides an up-to-date overview of how expats can access their UK State Pension, covering eligibility, payments, taxation, and important legal changes that affect contributions and uprating.

Who Can Claim the UK State Pension Abroad?

The State Pension is based on your National Insurance (NI) record.

To qualify:

New State Pension: You need at least 10 qualifying years to receive anything at all, and 35 years for the full pension.
Basic State Pension (for those who reached pension age before 6 April 2016): Requires 30 qualifying years for the full amount.

Living abroad does not prevent you from claiming. The key requirement is that you have paid, or been credited with, sufficient NI contributions during your working life.

How Much Will You Get?

For the 2025–26 tax year:

New State Pension: £230.25 per week (full rate).
Basic State Pension: £176.45 per week (full rate).

Your actual amount depends on your NI record. If you have fewer than the maximum qualifying years, you’ll receive a reduced proportion.

Where Can You Have It Paid?

You can choose to have your pension paid into:

A UK bank or building society account (in pounds sterling).
An overseas bank account, usually in the local currency. Payments use the current exchange rate, which means income may fluctuate with currency movements.

Payments are usually made every four weeks.

Will You Get Annual Increases?

The UK operates a “triple lock” uprating system—your pension increases each April by whichever is highest of:

Inflation (CPI),
Average earnings growth, or
2.5%.

Two expats with identical contribution records could receive vastly different amounts depending on where they retire.

However, uprating depends on where you live:

Increases apply if you live in the UK, the EU, Switzerland, Gibraltar, or countries with a reciprocal social security agreement with the UK.
Frozen pensions: If you live in countries without such an agreement—such as Australia, Canada, New Zealand, South Africa, or India—your pension will be “frozen” at the rate first paid.

This means two expats with identical contribution records could receive vastly different amounts depending on where they retire.

Filling Gaps in Your NI Record

If you don’t have enough qualifying years, you may be able to:

Pay voluntary Class 2 or Class 3 NI contributions.
Claim NI credits if you were caring for children, unemployed, or in receipt of certain benefits.
Use international agreements: Years worked in EU/EEA countries, Switzerland, or countries with a social security treaty may count towards your UK State Pension.

***Important update (April 2025): The window to backdate voluntary NI contributions has been permanently reduced to six years. Previously, individuals could buy back up to 16 years.

This change significantly limits how far back you can fill gaps, so forward planning is more important than ever.

How to Claim Your Pension from Abroad

The State Pension is not automatic. To claim from outside the UK:

Contact the International Pension Centre (IPC), which manages claims from abroad.
Submit the necessary forms (including proof of identity, address, and banking details).
If you’ve worked in another country with a reciprocal agreement, the local authorities may handle your application and forward details to the UK.

It’s recommended to apply at least four months before reaching State Pension age to ensure payments begin on time.

Tax Considerations for Expats

Where you pay tax on your UK State Pension depends on your country of residence and tax treaties in place.

Living in the UK: The pension is taxable as normal income.
Living abroad: You may pay tax in the country where you live instead of the UK, depending on local rules.
Double Taxation Agreements (DTAs): The UK has tax treaties with over 130 countries, ensuring you are not taxed twice on the same income. Usually, these treaties determine where the State Pension is taxable.

If no treaty exists, you may be subject to tax both in the UK and abroad, although you may be able to claim tax relief. It’s wise to seek professional tax advice to avoid unexpected liabilities.

Frozen Pensions – The Long-Term Impact

As mentioned earlier, if you live in a country without an uprating agreement, your pension will be frozen at the level you first receive it.

A pensioner receiving his pension in Canada.

Example:

A pensioner retiring to Canada in 2025 will continue to receive £230.25 per week for life, even if pensions in the UK rise to £300 per week in future.
By contrast, a pensioner in France or Spain will benefit from annual increases.

This policy has been heavily debated for years, but no change is currently planned. For expats considering retirement destinations, the frozen pension rule can significantly impact long-term income security.

Moving Between Countries

If you relocate after starting your State Pension, your payment may change depending on your new country of residence.

Moving from a “frozen” country (e.g., Canada) to an “uprated” country (e.g., Spain) means your pension will be increased to the current UK rate.
Moving in the opposite direction means your pension will be frozen at the level when you arrive.

It’s important to notify the International Pension Centre (IPC) of any change of address, banking details, or residency status to avoid payment issues.

How Exchange Rates Affect Your Pension

If your pension is paid into a local bank account in foreign currency, your income may fluctuate depending on exchange rate movements.

For example:

£230.25 per week could convert into €260 one month and €250 the next, depending on GBP/EUR exchange rates.
Over time, currency risk can erode your retirement income.

Tip: Many expats use UK accounts or international banking services to better manage transfers and exchange rate costs.

Planning Strategies for Expats

Because pensions are a cornerstone of retirement income, expats should take a proactive approach:

Check your NI record early, ideally a decade before retirement.
Consider paying voluntary NI contributions to boost your pension if you have gaps.
Review your country of residence’s tax and social security agreements with the UK.
Plan for inflation protection if retiring to a “frozen pension” country—this may mean supplementing income with private pensions or investments.
Seek cross-border financial advice to coordinate UK pension rules with your new country’s tax system.

Key Takeaways for Expats

The UK State Pension is payable worldwide, but uprating depends on where you live.
Payments can be made into UK or overseas bank accounts, though exchange rates may affect income.
Double Taxation Agreements play a crucial role in determining where your pension is taxed.
Frozen pensions remain a significant issue for retirees in certain countries.
Proactive planning—checking NI years, filling contribution gaps, and structuring retirement finances—ensures you get the most from your entitlement.