For many British expatriates, one of the biggest concerns when relocating overseas is understanding how to access a UK pension. When retiring abroad, it is crucial to understand how pension access and tax implications may change, as these factors can significantly impact your financial planning. Whether you live within the EU, Asia, the Middle East or further afield, the rules around receiving, transferring and withdrawing UK pension benefits can feel complex. The good news is that most people can still access their pension from abroad, but the process and tax treatment depend on the type of pension you hold, where you live and how you plan to draw your benefits.

This guide explains how UK pensions work when you live overseas, how to claim your pension, what tax rules apply, and how moving abroad can affect your pension access and planning, as well as how to avoid losing money to unnecessary fees or poor planning.

Can I Access My UK Pension if I Live Abroad?

In most cases, yes. Whether you have a personal pension, workplace pension, workplace pensions, or the UK State Pension, you can usually claim your retirement income from abroad. The key is understanding the rules for each pension type.

The process of claiming different types of pensions, including workplace pensions, may vary depending on your location and your pension provider.

Accessing a Personal or Workplace Pension Overseas

Most UK defined contribution pensions allow you to take benefits from anywhere in the world. You can:

• Begin drawing retirement income from age 55 (57 from 2028).
• Take the 25 percent pension commencement lump sum.
• Choose flexible drawdown or full withdrawal.
• Transfer your pension to an International SIPP if you prefer greater control while living overseas.

Your pension funds can remain invested until you choose to withdraw them, and pension providers play a key role in managing your pension, facilitating access, and enabling transfers while you are living abroad.

Many expats choose an International SIPP because it allows access to global investment platforms, multi currency options and simpler ongoing management when living abroad.

Accessing the UK State Pension Abroad

You can claim the UK State Pension from most countries. You can:

• Receive payments directly into an overseas or UK bank account.
• Access your pension even if you have been non resident for many years.
• Qualify based on National Insurance history, not current residence.

The UK State Pension can be claimed from abroad, but it is important to check the details and contact information for your country of residence to ensure a smooth claim process.

However, your annual increase may depend on where you live. State Pension increases apply in the EU and most treaty countries, but payments are frozen in some destinations such as Australia or Canada.

Can I Withdraw My UK Pension If I Leave the Country?

Yes, but how you withdraw it matters. You can access your pension pot from abroad, but the process and tax implications may vary depending on your circumstances. Many expats want to know whether they can take their pension as a lump sum or move it overseas.

Withdrawing Pension Money While Abroad

You can withdraw pension funds from overseas, although UK providers will typically pay into a UK bank account. Key points to consider:

• The 25 percent lump sum is normally tax free for UK residents. If you live abroad, local tax rules may apply.
• Income taken from your pension may still be taxable in the UK unless a double tax treaty states otherwise.
• Without proper planning, you could face double taxation or emergency tax deductions.

This is why many expatriates work with an adviser experienced in cross border retirement planning.

Can I Move My UK Pension Overseas?

You can transfer a UK pension to an International SIPP or, in some limited circumstances, a Qualifying Recognised Overseas Pension Scheme (QROPS). However, QROPS transfers are only suitable in specific cases due to the overseas transfer charge and restricted European access.

For most expats, an International SIPP remains the most cost efficient and flexible solution.

After transferring your pension to an international scheme, you may be able to have your pension payments deposited directly into a foreign bank account, depending on the provider’s policies.

How Long Can Pensioners Stay Abroad?

You can live abroad permanently and still receive your pension, but certain benefits or annual increases may change depending on your residency.

Spending a year abroad or extended periods outside the UK may affect your pension payments or eligibility for certain benefits.

How Residency Affects Pension Rules

Living overseas does not stop you receiving pension payments, but you may need to:

• Inform your UK pension provider of your change of address.
• Notify HMRC using form P85 if you are leaving the UK.
• Confirm your residency status to avoid incorrect tax deductions.

Your status as a UK resident or non-resident will affect how your pension is taxed and what rules apply to your pension payments.

If you return to the UK for long periods, your tax residency may change again, so annual reviews are essential.

Can I Live Overseas and Still Get My Pension?

Absolutely. Millions of British pensioners live outside the UK. The key considerations include taxation, payment processes and long term financial planning.

UK income, including pensions, may be subject to different tax rules when you live overseas, and it’s important to understand how your UK income will be taxed in your country of residence.

What Happens If I Do Not Tell My Provider I Am Moving?

Failing to update your contact information can lead to:

• Missed payments
• Suspended State Pension claims
• Incorrect tax applied
• Delays when trying to make withdrawals

Notifying the relevant pension authority when you move abroad is essential to ensure your pension payments are processed correctly and without delay.

Keeping everything up to date ensures smooth access to your pension throughout retirement.

Tax Considerations When Accessing a UK Pension Abroad

Understanding tax is essential when living overseas with a UK pension. You need to understand how your pension income is treated for tax purposes in both the UK and your country of residence.

Do I Pay Tax Twice?

This depends on your country of residence. If your destination country has a double tax treaty with the UK, you can often avoid double taxation. In some cases, your pension is only taxable in the country where you live.

Will I Pay UK Tax on My Pension?

Income from UK personal pensions is usually taxable in the UK unless the tax treaty says otherwise. Payments from the UK State Pension may also be taxable depending on residency rules.

An adviser can help you determine the most tax efficient way to structure withdrawals.

Government guidance and official resources can help you understand the tax rules that apply to your UK pension when living abroad.

Best Option for Expats: Consider an International SIPP

For many expatriates, accessing a UK pension from overseas becomes complex due to currency, tax and investment restrictions. This is why an International SIPP is often the preferred solution.

An International SIPP offers:

• Global investment choice
• Multi currency accounts
• Transparent fees
• Easy management from anywhere in the world
• Greater flexibility for long term expatriates

It allows you to keep your pension within UK regulation while accessing it more easily from abroad.

FAQs – How to Access Your UK Pension When Living Abroad

Can I get my UK pension if I live abroad? Yes. Most people can access their State Pension and private pensions while living overseas.

Can I move my UK pension overseas? Yes. Most expats transfer to an International SIPP for flexibility and global access.

How do I avoid UK tax if I live abroad? Check whether your country has a double tax treaty with the UK and complete the required HMRC forms.

Can I take my whole pension as a lump sum while living overseas? You can, but local tax rules may apply. Professional advice is strongly recommended.

Speak to an International Pension Specialist

Accessing a UK pension when living abroad requires careful planning. Whether you are retiring in Europe, relocating for work or already living overseas, Harrison Brook can help you structure your pension tax efficiently and securely.

Contact Harrison Brook today and speak with a regulated adviser who specialises in expatriate pensions.