UK Pension Checklist for Expats Moving Abroad: 12 Steps Before You Leave

Moving abroad is exciting. Sorting out your pensions before you go is considerably less so — but the consequences of not doing it can be significant and expensive to fix later.

The good news is that most pension actions can be taken systematically, and many of the most valuable ones (such as topping up your NI record or maximising contributions before leaving) are within your control right now.

This checklist covers the 12 most important pension-related steps for UK nationals relocating internationally. Work through them in order — some depend on others, and some have deadlines.

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Step 1: Get Your State Pension Forecast

Before anything else, understand what you have. Visit gov.uk/check-state-pension and log in using your Government Gateway account (or create one if you have not already done so).

The forecast will tell you:

• Your current State Pension entitlement based on NI record to date
• How many qualifying years you have accumulated
• Whether you are on track for the full amount (35 years) and, if not, how many more years are needed
• Any years where you can fill gaps via voluntary NI contributions

Write down your current entitlement and the number of qualifying years. This forms the baseline for Steps 2 and 3.

If you are within four months of State Pension age, contact the International Pension Centre directly rather than using the online service.

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Step 2: Consider Topping Up Your NI Record

If you have gaps in your NI record, filling them via voluntary contributions is often exceptional value — particularly if you will be living in a country where the State Pension is frozen (Australia, Thailand, UAE, Egypt), in which case maximising the headline amount before it freezes is especially important.

NI Class	Who Can Pay	Approx Annual Cost	Qualifying Year Adds
Class 2	Working abroad (self-employed)	~£179/year	~£6.89/week State Pension
Class 3	Anyone not qualifying for Class 2	~£924/year	~£6.89/week State Pension

At Class 3, the payback period (once you start receiving the State Pension) is approximately 2.6 years — excellent for most people with normal life expectancy.

Check current deadlines for plugging gaps in historical years — the government has previously extended windows for filling older gaps. Check the current position at gov.uk before assuming past years are still available.

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Step 3: Notify All Pension Schemes of Your Address Change

This sounds routine but is frequently overlooked. An incorrect address on file means:

• Annual benefit statements go to the wrong address
• Critical communications — including changes to scheme rules, merger notices, and deficit letters — are missed
• Nomination forms may not be updated as life circumstances change

Contact the administrators of every pension scheme you belong to or have deferred benefits in. Provide your new overseas address and ask for confirmation that their records have been updated.

For any schemes where you do not know the current administrator — common with pensions from employment 10–20+ years ago — use Step 4 first.

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Step 4: Trace Lost Pensions

The UK government's Pension Tracing Service is free to use and can locate lost or forgotten pension schemes based on employer name and approximate dates of employment.

Visit: gov.uk/find-pension-contact-details

The average UK worker changes jobs several times over their career. Each employer-sponsored pension scheme may hold deferred benefits — small amounts individually, but collectively meaningful. Many people discover pension pots they had entirely forgotten.

Once traced, contact the scheme administrator to:

• Confirm your current address
• Obtain a transfer value (if considering consolidation)
• Update beneficiary nomination

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Step 5: Update Nomination Forms on All DC Schemes

The Expression of Wishes or Nomination of Beneficiary form is the most important document you can complete in relation to your pension. It tells the scheme trustees who should receive your pension on your death.

Moving abroad may change who you want as your beneficiary — particularly if your domestic circumstances change, if your beneficiary is now a non-UK resident, or if you have acquired dependants or partners in your new country of residence.

Complete or update nomination forms for every defined contribution scheme you hold. Do this for:

• SIPPs
• Group personal pensions from current or former employers
• Any workplace DC scheme
• Any personal pensions held directly

Pension trustees follow nominations in the vast majority of cases. Without a nomination — or with a stale one — they exercise full discretion, which may not align with your wishes.

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Step 6: Review DB Pension Transfer Values

If you have a defined benefit (final salary) pension from a former employer, request a Cash Equivalent Transfer Value (CETV) from the scheme. You can do this at no cost, and the CETV is valid for three months.

You are not committing to transfer by requesting a CETV — you are simply gathering information.

Review the CETV in the context of:

• Your destination country's tax treatment of pension income (see Step 7)
• The scheme's funding position
• Your personal circumstances (health, desire to pass pension to heirs, distrust of scheme sponsor)

If you are leaving the UK permanently and have a large DB pension, this is one of the decisions that benefits most from early, specialist advice. A Pension Transfer Specialist (PTS) can produce a Transfer Value Analysis (TVA) that objectively models the transfer-or-retain decision.

Remember: transfer out of a DB pension with a CETV over £30,000 legally requires regulated PTS advice.

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Step 7: Understand Drawdown Tax in Your Destination Country

UK pension income drawn from a SIPP or other UK-registered scheme is technically UK-source income and is taxable in the UK by default. However, the double taxation agreement (DTA) between the UK and your country of residence may override this.

Destination	DTA Pension Treatment
Cyprus	Pension income taxed in Cyprus at 5% flat rate option
Greece	7% flat rate (non-dom regime, qualifying new residents)
Malta	Favourable under Maltese domestic rules
UAE	No DTA on personal income; UK pension technically subject to UK tax
Spain	Taxable in Spain at Spanish rates (up to 47%)
Thailand	Taxable in UK; Thai domestic tax on Thai-source income only

Understanding this before you start drawing pension income allows you to:

• Apply for a NT (No Tax) code from HMRC if the DTA favours the residence country
• Plan the timing and amount of drawdown to minimise combined taxation
• Decide whether QROPS restructuring would produce a better net outcome

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Step 8: Review Annual Allowance Position Before Leaving

If you still have UK earnings in the year of departure, the period immediately before leaving the UK is often the best opportunity to make additional pension contributions. You can:

• Use carry forward of unused Annual Allowance from the previous three years (up to £180,000 of carry forward if the full £60,000 allowance has been unused in each of the previous three years, plus the current year's £60,000 = up to £240,000 total)
• Contribute up to 100% of UK earnings in the departure year
• Receive full UK income tax relief at your marginal rate (40% or 45%)

After departure, if you are no longer a UK taxpayer, contributions are capped at £3,600 gross per year with basic rate relief only.

This is one of the highest-value planning steps available to UK nationals emigrating with significant earnings in their final UK tax year.

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Step 9: Consider QROPS Only After Proper Advice

QROPS (Qualifying Recognised Overseas Pension Scheme) are not the right solution for everyone — but for those permanently emigrating to countries with favourable DTA or pension tax treatment, they may be worth exploring.

Do not act on the basis of any unsolicited approach about QROPS. There are a significant number of unregulated schemes marketed as QROPS that are not on the HMRC list and constitute pension liberation fraud.

Approach QROPS analysis with a regulated PTS adviser, and only if:

• You are permanently leaving the UK with no realistic plan to return
• Your pension pot is substantial (typically £100,000+)
• Your destination country offers demonstrably better pension tax treatment
• The Overseas Transfer Charge (OTC) would not apply (i.e., you are resident in the same country as the QROPS)

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Step 10: Review and Consolidate Workplace Pensions

If you are leaving UK employment as part of your move abroad, your workplace pension will become a deferred benefit. Assess whether to:

• Leave it deferred in the occupational scheme — lower cost, potential for retained benefits
• Transfer to a SIPP — consolidation, investment control, better death benefit flexibility

For small pots under £10,000, consolidation into a SIPP simplifies administration.

Important: if the workplace scheme is a DB scheme (final salary or career average), check whether it has valuable guaranteed benefits such as defined rate increases, spouse's pension guarantees, or GMP (Guaranteed Minimum Pension) entitlements before deciding to transfer. These benefits are typically lost on transfer and their value must be assessed by a PTS.

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Step 11: Set Up International Banking for Pension Payments

UK pension income is paid in sterling. When drawing pension income abroad, you need a practical mechanism for receiving and converting this income:

• Maintain a UK bank account for sterling pension payments (or request payment directly to overseas account)
• Arrange SWIFT/SEPA transfer to overseas account, or use a specialist FX provider (such as Wise or OFX) to convert GBP to local currency at competitive rates — avoiding the poor exchange rates offered by many UK banks on overseas transfers
• For SIPP or QROPS in drawdown, ensure your drawdown provider can pay into your nominated overseas account

Arrange banking access before you become non-resident, as many UK banks restrict or close accounts for non-residents. Ring-fence at least one UK current account and one savings account before departure.

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Step 12: Keep HMRC Informed

Complete Form P85 (available on gov.uk) when you leave the UK. This notifies HMRC that you are going abroad and enables:

• Assessment of your UK tax residence status from the date of departure
• Potential refund of overpaid PAYE in the year of departure
• Correct treatment of UK-source income (rental income, pension payments) during and after the departure year

If you have UK property generating rental income, also register as a Non-Resident Landlord with HMRC — this allows rental income to be paid gross (without 20% withholding) if HMRC approves your application.

Failing to notify HMRC of your non-resident status is a common mistake with significant tax consequences. HMRC's position is that you remain UK resident — and fully liable to UK tax on worldwide income — unless you demonstrate otherwise under the Statutory Residence Test.

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How Global Investments Can Help

Our pensions team regularly supports UK nationals preparing for international relocation to destinations around the world. We help clients work through this checklist systematically and ensure no valuable planning opportunities are missed, wherever you are heading.

We can assist with:

• State Pension and NI review coordination
• Pension tracing for complex portfolios of former employer schemes
• Pre-departure contribution planning using carry forward
• QROPS and SIPP analysis for the destination country
• Coordinating pension planning with property investment and international estate planning

Visit /uk-pensions/ for our full suite of pension guides. For personalised guidance, contact our team. This guide does not constitute regulated financial advice. Pension rules are subject to change. Always seek qualified professional advice before acting.