The short answer: leave the State Pension in the UK system and arrange payment through the International Pension Centre. Before touching a private pension, identify guarantees, provider restrictions and tax consequences. Moving abroad does not itself require an overseas pension transfer.
State Pension uprating across the five destinations
The pension can be paid in every country below. The difference is whether UK annual increases continue while you live there.
| Destination | Annual UK increase? | Practical effect |
|---|---|---|
| Philippines | Yes | Currently on the government's uprating list. |
| Thailand | No | Normally held at the rate first payable while resident there. |
| Malaysia | No | Normally held at the rate first payable while resident there. |
| Vietnam | No | Normally held at the rate first payable while resident there. |
| Indonesia (including Bali) | No | Normally held at the rate first payable while resident there. |
Why this matters: a frozen pension loses spending power over a long retirement. Model a flat nominal UK amount against local inflation, exchange-rate movement and a separate healthcare reserve.
Before leaving: check your State Pension record
Check the forecast
Use the official forecast to see your estimate, pension age and whether filling particular gaps is expected to increase the amount.
Inspect the NI record
Look year by year. A partial year is not automatically worth buying; ask HMRC or the Future Pension Centre whether a payment improves the forecast.
Understand the 2026 rules
New voluntary Class 3 applications from abroad usually face a ten-year UK residence or ten-qualifying-year condition. Transition rules may help existing overseas payers.
Plan the claim
You do not receive the State Pension automatically. If abroad, contact the International Pension Centre or follow its international claim route, normally within four months of State Pension age.
Choose how the State Pension reaches you
The International Pension Centre can arrange payment to a UK bank or building society, or to an account in the country where you live. GOV.UK currently allows a four-weekly or thirteen-weekly schedule.
Receive it in the UK
This can keep sterling available for UK commitments and lets you choose when to convert. Confirm that the bank will continue serving residents of your destination and compare transfer costs.
Receive it locally
The payment is usually converted into local currency at the rate used at the time. GOV.UK currently states a 0.39% conversion charge before payment, so compare convenience with your alternatives.
Keep the International Pension Centre updated: report changes of address, bank details and country of residence. Where you live can affect annual increases.
Private and workplace pensions: four checks
Benefits
Record guarantees, safeguarded benefits, spouse benefits, inflation linking, early-access terms and exit fees before comparing anything.
Provider
Ask whether it will service residents of your destination, pay there, retain drawdown and accept future instructions.
Currency
Compare the provider's conversion with receiving sterling and converting separately. Budget for fluctuating local purchasing power.
Tax
Confirm UK withholding, destination tax and the pension article of the relevant double-tax treaty before taking a large withdrawal.
Why “move the pension abroad” is not a default step
An overseas scheme must meet HMRC's QROPS conditions. Even a QROPS transfer can face the 25% overseas transfer charge unless an exemption applies, and changing where you live within five full tax years can alter the charge position. The overseas transfer allowance is usually £1,073,100; a charge can apply to an excess even where the transfer otherwise qualifies for an exemption. Defined-benefit and safeguarded-benefit transfers can also trigger mandatory UK advice requirements.
Reasons to keep it in the UK
- Preserve valuable guarantees and regulation.
- Avoid transfer charges and avoidable complexity.
- Retain familiar investment and beneficiary structures.
- Draw sterling while converting deliberately.
Questions before any transfer
- Is the receiving scheme on the current QROPS notification list?
- What is every initial and annual fee?
- Which protections and benefits disappear?
- Does a charge apply now or after a later move?
Scam filter: reject pressure, cold approaches and “tax-free” promises. Verify both the firm and individual on the FCA Register and independently retrieve contact details.
A practical pension file to take with you
- State Pension forecast, NI record and any gap-payment confirmation.
- Provider names, policy numbers, scheme type and nominated beneficiaries.
- Current transfer values and a written list of guarantees or penalties.
- Provider confirmation of overseas servicing, payment currency and fees.
- The relevant treaty pension article and advice record for major decisions.
- International Pension Centre and provider contact routes that work from abroad.