UK state pension: the countries where your pension will remain frozen  

Many Brits dream of retiring overseas to enjoy sunnier weather and a lower cost of living. 

However, many may not realise that their UK state pension could remain frozen at its current level and not benefit from annual increases. This can be disappointing after spending decades working hard to ensure you’re entitled to the full amount. 

According to the Department for Work and Pensions (DWP), over 40% of the 1.12 million pensioners living overseas are affected by the frozen state pension. 

While it may not seem to have a huge impact initially, over 15 years, expats miss out on £26,000 in higher state pension payments, according to interactive investor.  

We explore what you need to know, including how much the state pension is worth and where you can move to and still benefit from annual increases.  

What is the state pension, and how much is it worth? 

The state pension is paid when you reach state pension age, which is currently 66, but will gradually rise to 68 in the future. 

You need at least 10 qualifying years on your national insurance record to be eligible for the new state pension. You’ll only get £65.79 per week if you have 10 qualifying years, and between £65.79 and £230.25 a week if you have between 11 and 34 years of contributions.  

 To receive the full amount, you'll need 35 qualifying years. 

In the 2025/26 tax year, the new state pension pays £230.25 a week (£11,973 a year).  

If you reached the state pension age before 6 April 2016, you would receive the basic state pension, which is up to £176.45 a week. 

It’s recommended that you don’t rely on the state pension alone and contribute to a workplace or private pension. However, it can be a valuable supplement to your retirement income.   

If you’re considering retirement planning or are curious about how much you need to save, Unbiased’s pension calculator can offer some useful insights.  

Does the state pension rise in value? 

The state pension increases every year in line with the highest of either: 

• Inflation 

• Average earnings 

• 2.5% 

This is known as the triple lock, which is designed to help protect pensioners’ incomes and ensure the state pension rises at a faster rate than it would do if it only increased in line with one measure.  

However, while the state pension rises every year for those who live in the UK, the same won’t necessarily apply to those who move overseas.  

The state pension may be paid at the same amount as when the individual first became eligible, or on the date they left the UK if they already reached state pension age.  

Where can you move to and still receive the UK state pension increases? 

A frozen state pension can have a huge impact over time, especially as prices rise, so your income may not maintain its same purchasing power. 

Your state pension should increase annually if you decide to live in: 

• The European Economic Area (EEA) 

• Switzerland 

• Gibraltar 

• Countries that have a social security agreement with the UK (list below) 

If you live in one of the countries below, your state pension will usually increase every year: 

• Barbados 

• Bermuda 

• Bosnia-Herzegovina 

• Guernsey 

• The Isle of Man 

• Israel 

• Jamaica 

• Jersey 

• Kosovo 

• Mauritius 

• Montenegro 

• North Macedonia 

• The Philippines 

• Serbia  

• Turkey 

• The US 

While the UK does have social security agreements with Canada and New Zealand, you won’t benefit from the annual increases in the UK state pension if you live in either country.

Below you can find a comprehensive list of countries where the UK State Pension is currently frozen:

Does my state pension rise again if I return to the UK? 

Yes, if you return to live in the UK, your state pension will go up to the current rate.  

You’ll need to contact the International Pension Centre when you move back, and you should be back in the UK for at least six months for your state pension to increase. 

What can I do if my state pension is set to be frozen? 

If you’re keen to retire abroad, it’s important to plan ahead. 

First, check if your state pension will increase every year in your chosen country.  

Look at how much your state pension will likely be in the tax year you’re planning to move abroad. You should then look at your workplace and private pensions to get a good idea of how much to expect in income each year.  

It’s worth talking to a financial adviser about your retirement and your goals, so they can help you plan out how much you need in your pensions and the most tax-efficient way to access them. 

They can also advise on the best way to boost your pension so that your money can last throughout retirement and make up for any shortfall in state pension increases. Additionally, they can help you manage any changes that may impact your needs. 

While this may be overwhelming, it’s worth stressing that some countries may have a lower cost of living than the UK, so you may not need to save as much as expected. 

You’ll also need to consider whether you’ll be renting or buying a home, how to fund any healthcare needs, and what insurance policies you may need, among other things.  

Get expert financial advice 

Retirement planning can be overwhelming, but it doesn’t need to be. 

Unbiased can match you with a qualified financial adviser regulated by the Financial Conduct Authority (FCA) who can help you plan for retirement, wherever you decide to live.