Moving abroad with a State Pension, and the countries where it stops rising
A UK State Pension can be paid almost anywhere, but it only rises each year in the EEA, Gibraltar, Switzerland and certain agreement countries. Elsewhere, including Canada, New Zealand and Australia, it stays frozen.
Lorraine has spent three winters visiting her daughter in Perth, and this year the family has started talking about her moving out for good. Her friend Pete, meanwhile, is weighing up a flat in Spain. Both have a UK State Pension, and both assume it will simply follow them. It will, but the two moves lead to quite different results over time, because the UK rules on yearly increases depend on exactly which country a pensioner lives in.
The pension can be paid almost anywhere
A UK State Pension does not stop because someone leaves the UK. GOV.UK explains that it can be claimed from abroad and paid either into a bank account in the country where the person lives or into a UK bank or building society account.
Someone already living overseas can claim when they are within four months of reaching State Pension age. The claim goes to the International Pension Centre, part of DWP, either by contacting it directly or by sending the international claim form to the address printed on it. Claiming is free, and it is done only with DWP; no website can do it on a person’s behalf. Anyone who has also worked in another country contacts that country’s pension authority about any pension due from there.
One rule surprises people who split their year: the pension is paid in one country only. GOV.UK says it cannot be paid in one country for part of the year and another country for the rest.
Where it keeps rising each year
The big difference between countries is the annual uprating, the increase that took the full new State Pension to £241.30 a week from 6 April 2026. The background to that rise is in how the April State Pension rise changed weekly payments.
According to GOV.UK, the State Pension only increases each year for people living in:
- the European Economic Area (EEA), which covers the EU countries plus Iceland, Liechtenstein and Norway;
- Gibraltar;
- Switzerland;
- countries with a social security agreement with the UK that provides for increases.
The DWP list of agreement countries where increases are paid names Barbados, Bermuda, Bosnia-Herzegovina, Gibraltar, Guernsey, the Isle of Man, Israel, Jamaica, Jersey, Kosovo, Mauritius, Montenegro, North Macedonia, the Philippines, Serbia, Turkey and the USA.
Where it is frozen
Anywhere else, the pension is not increased each year. GOV.UK states plainly that people “will not get yearly increases” if they live outside the countries listed. Canada and New Zealand are a notable case: the UK has social security agreements with both, but they do not include increases. Countries that are not on the list at all, such as Australia and South Africa, are also frozen.
The freeze is not permanent for the person. GOV.UK says the pension goes up to the current rate if they return to live in the UK.
“The pension follows the person abroad. Whether it keeps pace depends on where they settle.”
What a freeze can mean over a few years
The effect is easy to underestimate in the first year, because nothing appears to change. The gap builds up. The table follows Lorraine and Pete with the same invented starting pension and an invented rise of 3% a year where increases apply. Real future increases are not known in advance and could be higher or lower.
| Illustrative example, figures invented | Lorraine, Australia (frozen) | Pete, Spain (uprated) |
|---|---|---|
| Weekly pension on moving | £200.00 | £200.00 |
| After 1 year | £200.00 | £206.00 |
| After 2 years | £200.00 | £212.18 |
| After 3 years | £200.00 | £218.55 |
| Weekly gap after 3 years | — | £18.55 |
Invented starting pension and an invented 3% yearly rise, compounded and rounded to the penny. Over a full year the weekly gap after three years would come to roughly £960. Not a forecast of actual increases.
How payments work from abroad
GOV.UK sets out the practical details. Overseas accounts need an IBAN and BIC, or a bank code and account number. Money paid into a foreign account is usually converted into local currency at the exchange rate on the day of conversion, and a 0.39% conversion charge is taken before payment. That means the amount arriving can move with exchange rates even when the pension itself is frozen.
Payments can be made every four weeks or every 13 weeks. A State Pension of less than £5 a week is paid once a year in December. Holidays can delay things: GOV.UK notes that payments are processed by a US company, so a payment in the same week as a US federal holiday may arrive a day late, and local bank holidays can also cause delays. The usual UK payment pattern is explained in why the State Pension arrives on the day it does.
Telling DWP about a move
GOV.UK points people who have already retired and are thinking of moving abroad to the International Pension Centre, which can explain how a particular move would affect their pension before any decision is made. Residents of Northern Ireland can find the equivalent contacts on nidirect.
Once abroad, changes such as a new address or new bank details go to the International Pension Centre by phone or in writing. GOV.UK says not to send them by email. Its State Pension line is +44 (0) 191 218 7777, Monday to Friday, 8am to 6pm UK time, and it offers call-backs to reduce the cost of calling from overseas. Anyone returning to the UK contacts the Pension Service with their return date and contact details, and tells HMRC too.
Life certificates
From time to time DWP may send a “life certificate” form to confirm that a pensioner living abroad is still entitled. It has to be signed by a witness, who does not need to live in the UK or hold a passport from any particular country. GOV.UK warns that payments may be suspended if the form is not sent back. A genuine form comes from DWP itself; it is not something to complete through an advert or a third-party site.
Tax still needs a thought
Moving abroad does not automatically end UK tax questions. GOV.UK says someone may still pay UK tax if they are classed as UK resident, and that people can be taxed in both countries; where a double taxation agreement exists, the pension is taxed only once, in whichever country the agreement says. How tax on the State Pension works for UK residents is covered in why tax on the State Pension usually comes out of other income.
Who this matters for, and what to check
- Whether the destination is in the EEA, Gibraltar, Switzerland or on DWP’s list of agreement countries with increases.
- That a single country is chosen for payment, even for people who split the year.
- The account details needed (IBAN and BIC) and the effect of exchange rates and the 0.39% charge.
- Contacting the International Pension Centre before leaving, and reporting the new address once abroad.
- Watching for life certificate forms and returning them on time.
What to take from this
The UK State Pension follows its owner around the world, but the yearly increase does not. In the EEA, Gibraltar, Switzerland and the listed agreement countries such as the USA and the Philippines it keeps rising; in Canada, New Zealand, Australia, South Africa and other unlisted countries it stays where it was. Checking the official list with the International Pension Centre before moving is free and settles the question for a specific country.
Official sources
- GOV.UK — State Pension if you retire abroad · Claiming within four months of State Pension age, one country of payment, accounts, 0.39% conversion charge, four- or 13-weekly payments, US federal holiday delays.
- GOV.UK — State Pension if you retire abroad: how your pension is affected · Annual increases only in the EEA, Gibraltar, Switzerland and agreement countries, not Canada or New Zealand; current rate on return to the UK.
- GOV.UK — Countries where we pay an annual increase in the State Pension · List of EEA countries and the 17 agreement countries where increases are paid.
- GOV.UK — International Pension Centre · Phone numbers, opening hours, reporting changes by phone or letter.
This is private, sponsored general information from B.B.R. Finance OÜ on thepowertodomore.com. It is not a communication from the Department for Work and Pensions (DWP), the Pension Service or HM Revenue & Customs (HMRC), and this website is not affiliated with them or with any other government body. It is not personal financial, tax or legal advice. Amounts and examples are illustrations, not a promise of any payment, refund or saving; they were checked on against the official sources listed and can change. This website takes no applications, arranges no products and charges no fees. Never give your National Insurance number, bank details or Government Gateway / GOV.UK One Login credentials to a website because you have read an article. For your own State Pension, tax or benefits, use the official services on GOV.UK.
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