You may be receiving a state pension in the UK if you fulfil the qualification requirements by paying the UK National Insurance contributions. If you’re residing abroad or are planning to do so, you may also specify that the pension gets transferred to your UK bank account or a foreign one.
However, you need to consider various factors and conditions when trying to receive a pension. You should expect different implications on your retirement plans and this article outlines some common situations which you may encounter when living outside of the UK.
The Preliminary Requirements
Receiving a pension in the UK requires some preliminary guidelines if you plan to move out of the UK. These guidelines are stipulations from the IPC (International Pension Centre).
Firstly, you must report to the IPC if you’re retiring outside of the UK. Additionally, it would be best to inform them of any changes there might be (if you’ve moved before making the report, for example). Both requirements are crucial to getting a regular state pension payment, and failure to inform them might stop you from getting your pension outright.
Can I Get My Pension If I Live Abroad?
If you reside in the UK, retirement payments in the UK can be subject to increases and tax returns. Also, UK pensioners living in the EU, Switzerland or Gibraltar might benefit directly from the arrangement. Generally, if you seek to access your UK pension from a country with a social security relationship with the UK, you can enjoy up to a 25% tax waiver on the payment.
However, things are different elsewhere in the world. For instance, if you reside in Canada, your UK pension payment gets frozen as soon as you begin to claim it. The same holds for Australia and other specific countries. It means that your pension value gets suspended (i.e. won’t witness an increase) until you return to the UK permanently. Alternatively, you can follow some specific criteria stipulated by the UK government.
Overall, retiring abroad may get your UK pension payments frozen, and your income can also decrease in value over time due to inflation.
How to receive your UK pension income?
If you are seeking to receive your state pension outside of the UK, the following are some of the banking mediums you can use:
- A UK-based bank
- A bank based in your country of residence
- A UK-based building society
- An online multi-currency account such as Wise
Furthermore, you can use several account options such as:
- A personal account
- A borrowed bank account, valid as long as it has the necessary permissions and follows current terms and conditions
- A joint bank account
- An International Bank Account Number (IBAN)
- A Bank Identification Code (BIC) – For an overseas account.
Final Thoughts
UK pensions may fall under a broader range of regulations if you live elsewhere in the world. Still, your primary concern should be to ensure that you fulfil all the conditions that enable you to draw your income from the state payment, increase its value, or keep it from depreciating.
The content above aims to point you in the right direction concerning pension claims and withdrawals within the UK jurisdiction.
To get assistance with your state pension payments or anything related with your UK State pension, contact the pension service. If you need assistance with your private pension, contact us: