Over a fifteen-year period, foreigners forfeit a state pension of £26,000

When over 450,000 retirees depart the United Kingdom, their state pension is "frozen"

We describe the policy's operation and the nations that are impacted.

According to a recent analysis, UK pensioners residing overseas lose out on nearly £26,000 in state pension income over a 15-year period because of frozen payments.

Only some British retirees who relocate overseas are eligible for the triple lock, as it varies depending on the country in which they live, even though they still receive a UK state pension. The state pension is annually increased by the triple lock in accordance with inflation, earnings, or 2 percent, whichever is higher.

At the moment, the entire new state pension is worth 230.25 per week, or 11,973 annually.

However, a person who retired overseas to a nation like Australia, Canada, or South Africa, where state pensions in the UK are not raised, would have had their yearly state pension frozen at £5,077 15 years ago.

In 2010, a UK pensioner would have received the same amount, but it would have been increased annually. Interactive Investor's calculations show that the expat's lost state pension over a 15-year period is £25,832.

While a retiree who relocated overseas five years ago would have lost out on 7,391, the lost income over ten years comes to 13,162.

According to Myron Jobson, senior personal finance analyst at Interactive Investor, "Many retirees aspire to live out their golden years abroad, whether it's for a better quality of life, a warmer climate, or to be nearer to friends and family. It's important to think about how moving could impact your state pension entitlement, even though the lifestyle may seem alluring.

"Your state pension will remain at the level at which you initially received it if you relocate to a nation where the UK does not have an uprating agreement. As a result, you will not be eligible for the annual triple lock increases that UK pensioners receive, which over time may significantly reduce your purchasing power.

According to the International Consortium of British Pensioners (ICBP), 453,000 pensioners do not receive yearly increases.

It has lobbied for years to change government policy in order to increase the state pensions of all British expat pensioners.

We examine which nations are impacted by state pension freezes, the amount of money lost by British expatriates, and how to get ready if you plan to retire overseas.

In which nations are state pensions frozen, and for what reasons?

According to data from the Department for Work and Pensions (DWP), frozen state pensions affect over 40% of the 11.2 million pensioners who reside abroad. This amounts to slightly less than 4 percent of the 12.7 million individuals who receive state pension benefits.

The state pension for British citizens who relocate to the USA, Jamaica, Gibraltar, Switzerland, or other nations in the European Economic Area is increased annually.

However, all African nations, as well as many Caribbean islands, Canada, New Zealand, India, Pakistan, Bangladesh, and Australia, do not profit from any form of uprising.

The "no reason other than this situation has existed for over 70 years" is what the ICBP claims.

Countries have reciprocal social security agreements with the UK, according to the UK government.

The number of signatures on a petition to lift "frozen pensions" has exceeded 174,000.

"This policy can have a devastating impact on the lives of those affected and, for some, the income lost can mean a retirement of poverty," it notes, adding that the "UK government continues to refuse to enter into any new agreements that would end this pension injustice for all."

What is the amount of money that foreigners receive from their state pensions that are frozen?

Those who live abroad with a frozen state pension receive only 3,000 per year on average, which is roughly 7,000 less than retirees in the UK, according to calculations made by Interactive Investor last year using data from the DWP.

The impact of the freeze compounded over time, causing the payment gap to widen considerably with age. According to data from 2024, people in their 90s who have a frozen state pension only receive an average of 1,896 annually, compared to 10,809 for a British pensionera discrepancy of 8,913.

UK expats' "financial comfort in later years, leaving some facing poverty in old age" may be greatly impacted by the frozen state pension policy, according to Jobson.

The ICBP cites the example of 100-year-old World War II veteran Anne Puckridge, who paid her full National Insurance premiums while living and working in the UK until she was 76 years old. When Anne left the UK for Canada in 2001 to be nearer to her daughter and grandchildren, her pension was "frozen" at £72.50.00 per week. She would have received weekly state pension payments of 169.50 if she had remained in the UK.

However, according to the consortium, 49% of "frozen pensioners" receive 65 per week or less, which is less than Anne's income.

How can I make retirement plans overseas?

Check to see if your state pension will be frozen in the country where you plan to retire. A useful list of nations where the DWP increases the state pension annually is available.

According to Jobson, preparation is essential if you are going to be affected by a frozen state pension. To fully comprehend the ramifications of retiring overseas, it may be worthwhile to consult with an independent financial advisor.

In the event that their entitlements are frozen upon their relocation, British pensioners contemplating retirement abroad during the current tax year may lose out on nearly 70,000 in state pension payments over a 20-year period, according to Interactive Investor.

Based on the Office for Budget Responsibility's September 2025 inflation forecast, this assumes that full state pension payments will increase by 3 percent in April 2026 and then by 2.5 percent annually after that, in accordance with the triple lock.

To maximize your entitlement, Jobson advises: "To fill in any gaps in your National Insurance record, think about doing so. You can increase your state pension by deferring it, but in frozen nations, it won't help with uprating.

Most importantly, regardless of state pension freezes, having a healthy private pension fund can help you maintain your standard of living overseas. Your retirement abroad can be made more secure and comfortable by carefully planning your budget and accounting for growing living expenses.

In a separate article, we examine the implications of retiring overseas for your pension.