What happens to my pension if I retire abroad?
Mar 1, 2024
Dreaming of Retiring Abroad?
Retirement is a season of life that many look forward to, and for some, it brings the exciting possibility of living abroad. If this is something you're considering, it's essential to understand how moving overseas may impact your financial situation, particularly your pension.
Personal and Workplace Pensions
Good news! Generally, choosing to retire abroad won’t affect the payments from your personal or workplace pensions. Here are some key points to keep in mind:
Your pensions should continue to be paid in full.
You are normally entitled to any pension increases, regardless of where you live.
Checking the Details
Even though your pensions are secure, it's crucial to iron out a few details with your pension provider before packing your bags:
Confirm if your pension scheme can transfer funds directly to an overseas bank account, as some workplace pensions might only make payments to UK banks.
Check if your annuity provider charges fees for overseas payments. These costs can add up, so it's worth investigating!
State Pension: UK and Abroad
If you're eligible for a UK State Pension, you’ll be pleased to know that you can still receive it when living abroad. However, annual increases depend on where you reside:
If you live in a European Economic Area (EEA) country or a country with a social security agreement with the UK, you are entitled to yearly increases.
If not, you might not receive these increases while you are abroad.
Before you pack…
Retiring abroad can be a fulfilling experience, and with a bit of planning, your financial affairs, including your pensions, can be managed smoothly. Remember to check the specific terms of your pension arrangements and consult with your pension provider about any concerns you might have.
Finding and consolidating your pensions is easy with Penny! Manage all your pensions effortlessly through our app, and start planning your dream retirement—wherever it may take you.
