Am I Still Entitled To My State Pension?
If you are
retiring abroad, you are still entitled to claim your
UK State Pension as long as you have built up a suitable amount of qualifying years of
NIC contributions. However, your entitlement to yearly increases in the State Pension only applies in certain countries.
Am I Entitled to Increases?
The increases only apply if you live in the
following areas:
- The European Economic Area (EEA), Gibraltar or Switzerland.
- A country with a social security agreement with the UK that allows for the cost of living increases to the State Pension. Note that the UK has social security agreements with Canada and New Zealand, but you cannot get a yearly increase in your UK State Pension if you decided to retire abroad in either of those countries.
If you do not qualify for the annual increase in the State Pension but move back to the UK, your pension will revert to the current rate.
How Do I Claim My Pension?
If you live abroad, you must be within four months of your State Pension age to claim.
To claim your pension, you can either:
You can elect to have your pension paid into a UK or foreign bank account. There are also tax implications that need to be considered. If your country of residence does not have a double taxation agreement with the UK, you may pay tax in both countries.
Contact Us
If you’re planning on retiring abroad and need to speak over your options. If you’re planning on moving to a country where increases are not allowed and there and doesn’t have a double taxation agreement. Our team can help you ensure you understand the tax implications of your desired destination and prepare your tax affairs accordingly. For more information contact our Tax team today.