If you are currently contributing to a pension scheme in the UK and you then move abroad, it is highly likely you will still be able to claim it. You state pension will not be affected by your moving abroad. When you do move abroad you will need to make the local authorities aware of this – depending on where you move to, it might be able to pay it direct into your foreign bank account. If not you can continue to have it paid into your UK account and then use a currency specialist, such as Smart Currency Exchange, to transfer it abroad.

Each case is different and you will need to contact The Pensions Advisory Service (OAPS) to get advice on your specific circumstances. For other personal or work related pensions, you will need to make arrangements with the pension provider to move them abroad. Please note, once you have moved abroad, you will only be eligible to continue paying into personal pensions for 5 years. You may also wish to continue to make voluntary National Insurance contributions in order to preserve your state pension.

You can choose not to pay National Insurance once you have moved abroad, and you will still be entitled to some type of state pension, though it will be only what you earned up until you moved away from the UK. If you move outside of the EU, your state pension may be ‘frozen’ at the current rate depending on the country you moved to, and you won’t be entitled to any index-linked rises. These are the areas you can move to and still be entitled to the rises:

• The European Economic Area (EEA).
• Switzerland.
• A country with which the UK has a social security agreement that includes the UK State Pension.

If you live abroad already then the ‘freeze’ will start on the same day that you begin to claim. This freeze is the reason that over 500,000 pensioners from the UK do not receive an annual increase to their pension. Countries include Australia, Canada and South Africa. Please note that those moving to America will be entitled to receive the increase.

If you do not fully emigrate and you still spend more than 6 months of the year living in the UK, you will be entitled to a full state pension, including increases, for that year. Please note that you will only be able to have your state pension paid into one account, either a UK one or a foreign account.

Before you move abroad you should seek to get a pension forecast. This will show you exactly what you are entitled to and how much you can expect to receive. This forecast can be requested up to four months before you are able to begin claiming.

Start your hunt for a home abroad here…
If you’re searching for an overseas property, a good place to start is the Overseas Guides Company’s new property search facility. To start your search now visit http://www.emigrationguide.com/content/emigration-properties