(Image: Oleksandr Kondriianenko)
Brits dreaming of retiring abroad could be hit by a “frozen” State Pension because of one detail they may overlook before moving overseas.
People who have built up enough qualifying years can claim their UK State Pension while living abroad – but whether their payments rise each year can depend on where they choose to live.
Simon Hood, Executive Director of relocation firm John Mason International Movers, is warning would-be expats to check the rules before committing to a new life overseas.
He said: “Any British national who has built up enough qualifying years can claim their state pension while living anywhere in the world. However we deal with several clients looking to migrate in their retirement, that aren’t aware of the frozen pension problem.”
From 2030, the Government is proposing changes to the Pensions Triple Lock to ensure pensioners continue to be protected and the State Pension remains sustainable for future generations. https://t.co/SrzlG2kfKT
— Department for Work and Pensions (@DWPgovuk) September 29, 2026
What is the frozen State Pension problem?
Britons can claim their State Pension while living overseas, but the amount they receive does not necessarily increase in line with inflation, average earnings or the triple lock in every country.
Similarly, they are not eligible for Winter Fuel Payments if they usually live outside England, Wales or Northern Ireland. Pension Age Winter Heating Payment helps people in Scotland.
According to Hood, the treatment depends on the country where someone chooses to retire and whether the UK has an agreement covering pension arrangements with that country.
He said: “While the logistics for an individual moving abroad are complex, the tax and welfare entitlements become a nightmare for governments – that’s why they develop agreements between themselves, known as totalisation agreements.
"This makes sure people aren’t necessarily paying double contributions, and that your pension sees an annual increase. So, checking one such agreement exists is essential.”
But there is an important catch: Having an agreement with the UK does not automatically mean your State Pension will increase each year.
Totalisation agreements explained
The release warns that agreements between countries can cover different benefits and do not necessarily guarantee State Pension uprating.
Canada is given as an example. John Mason International Movers says it recorded a rise of more than 260% in relocations to Canada between 2018 and 2025.
However, Hood says the agreement between the UK and Canada covers some benefit entitlements but does not provide for State Pension uprating.
That means a British pensioner living in Canada could receive a payment that does not increase in the same way as the State Pension for someone living in a country where uprating applies.
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Hood said: “The agreement’s absence of uprating means the government isn’t obligated to increase pension payments in line with inflation – creating a frozen amount.”
He warned that the impact could become significant over a long retirement.
“It’s an issue parliamentarians and campaigners have long pointed out, it may not seem like a dealbreaker, but when considering the compounded amount over a 10, 20-year period of retirement – it could have a real knock-on effect later down the line.”
Retiring abroad: what should you check?
Hood urged people approaching retirement to investigate the pension rules before choosing their destination.
He said: “My recommendation to pensioners before moving abroad is to consult a relocation expert, research the DWP guidance on which specific countries see increases, or refer to the international pension centre.”
He also stressed that simply finding an international agreement between the UK and another country is not enough to establish whether a pension will increase: “A totalisation agreement itself doesn’t mean your pension could be uprated, so to those considering retirement abroad - undertake thorough research before making decision on any single destination.”