State Pension: What to Expect When You Retire Abroad

From April 2026, the State Pension is due to rise by 4.7% under the ‘triple lock’. 

Whether it rises each year (‘uprates’) for you when you move abroad depends on where you live. 

You’ll still get the annual increase if you live in the European Economic Area (EEA), Switzerland or in certain agreement countries. 

Everywhere else your pension is frozen at the rate when you first claimed, or when you left the UK if already claiming. 

If you later move back to the UK or to an uprating country, it’s increased to the current rate. 

The current list of uprating countries beyond the EEA and Switzerland includes: 

• Americas: USA, Barbados, Bermuda, Jamaica. 
• Europe (non-EEA): Gibraltar, Bosnia-Herzegovina, Kosovo, Montenegro, North Macedonia, Serbia, Turkey. 
• Crown Dependencies: Guernsey, Jersey, Isle of Man. 
• Africa/Indian Ocean: Mauritius. 
• Middle East: Israel. 
• Asia–Pacific: Philippines. 

Uprating eligibility varies and changes; check GOV.UK for the current list. 

The UK does have social security agreements with Canada and New Zealand; however, you won’t receive the yearly state pension increase there. 

Governments of all parties have kept this policy because it would be too expensive to change, and they want to prioritise pensioners living in the UK. 

The Department for Work and Pensions estimates that giving annual rises to people in all the frozen countries would cost about £4.6 billion over 2023/24-2027/28. 

When you move abroad, the starting point for tax is your tax residence. 

Each UK tax year, the Statutory Residence Test decides whether you’re UK-resident or not. Your status can change from year to year, so where you live and how much time you spend in each country really matters. 

Next, look at the double-taxation agreement (DTA) between the UK and your new country. 

Most treaties are designed to stop the same income being taxed twice. They set out which country has the right to tax each type of income and, if both can tax it, how relief is given. In practice, private/workplace pensions are often taxable only in the country where you live 

The UK state pension can be treated differently: some treaties give taxing rights to your country of residence (for example, the U.S., Canada and New Zealand), while others leave tax with the UK. 

Government service pensions – such as many civil service schemes – are frequently taxed in the UK unless you meet specific nationality or residence exceptions in the treaty. 

Mechanically, the state pension is paid “gross”, with no UK tax deducted. If the UK has taxing rights, HMRC usually collects through Self Assessment or by adjusting tax on other PAYE income. 

Workplace pensions typically deduct tax via PAYE, but if a treaty says the UK shouldn’t tax them, you can ask the provider to pay gross once HMRC issues an NT tax code. 

Before or after you leave, tell HMRC you’re moving (P85 if you’re not in Self Assessment, or the SA109 “Residence” pages if you are). 

If the treaty gives taxing rights to your new country, claim treaty relief so UK tax isn’t taken in error – normally using Form DT-Individual, certified by your new country’s tax authority. 

If you’ve spent time living or working in the UK, you can sometimes pay extra National Insurance (NI) while you live abroad to fill gaps in your record and boost your UK state pension. 

If you’ve lived in the UK for three years in a row at some point, or paid NI for three years, you’ll usually qualify. 

There are two prices: 

Class 2 (cheaper): For people who worked in the UK just before leaving and are working abroad. For 2025/26 the payment is £3.50 a week, or £182 for the full year. 

Class 3 (standard): For most other situations. For 2025/26 the payments are £17.75 a week, or £923 for a full year. 

These are the current published rates at the time of writing. Rates change each tax year, so you will need to confirm with HMRC before paying. 

Normally you can buy the last six tax years, and the cut-off is 5 April each year (for example, you have until 5 April 2031 to buy 2024/25). 

Whether paying extra National Insurance actually helps depends on your record. Some people won’t gain by buying more years. 

Check your state pension forecast and, if you’re below state pension age, you can call the Future Pension Centre to confirm which years (if any) are worth buying. 

If paying extra National Insurance would benefit you, you need to fill in form CF83 (apply to pay voluntary NI from abroad). 

HMRC will tell you whether you can pay Class 2 or Class 3, which years you can buy, and how to pay. 

Pick your route: 

• International Pension Centre (IPC): Best if your situation isn’t straightforward (for example, you’ve worked in multiple countries, you’re unsure about uprating rules, or you want help with forms). The IPC can explain your options, tell you what evidence they’ll need, and send the right forms. 

• Country-specific GOV.UK forms: Many countries have tailored guidance and forms on GOV.UK. Follow the instructions for your country of residence and submit as directed (often to the IPC). 

When to start: Aim to start your claim about three to four months before the date you want payments to begin. 

What you’ll need ready: 

• National Insurance number and date of birth 

• Current overseas address and the date you left/are leaving the UK 

• The date you want to start your state pension (or if you’re deferring) 

• Bank details (UK or overseas) – IBAN/SWIFT if outside the UK 

• Marital/partner details (if applicable) and any name changes 

• Work/residence history if you’ve lived or paid into systems abroad 

After you’ve applied: 

• You’ll receive a confirmation and, if needed, requests for any extra evidence. 

• Keep your address and bank details up to date. 

• Expect occasional ‘life certificate’ checks to confirm you’re still eligible – return them promptly to avoid payment pauses. 

The UK state pension landscape when you move abroad can be complicated – uprating rules, treaty nuances, and paperwork vary by country. 

Hoxton Wealth can help you navigate the UK state pension from overseas. If you’d like tailored guidance, we can review your circumstances and outline practical next steps. 

Get in touch with our client services team today.