Living Overseas
The fact that you may live or work abroad does not necessarily exclude you from building up or receiving a State Pension or receiving annual increases.
Building up the State Pension whilst living abroad.
National Insurance Contributions paid whilst you are living in Northern Ireland or the Isle of Man will count towards your State Pension. Likewise if you live in a country that has a reciprocal arrangement with the UK, then your contributions may meet the contribution conditions for a State Pension. In addition, you may be entitled to a State Pension from your country of residence if you are contributing to its State Pension arrangement.
Receiving the State Pension whilst living abroad.
The State Pension can be paid to you even though you are living abroad temporarily or permanently. If your payment is made by direct payment into your bank or building society, this can continue but you would be advised in contacting the International Pension Centre at:
The Pension Centre
Tyneview Park
Newcastle upon Tyne
NE98 1BA
Telephone: 0191 218 7777.
State Pension annual increases.
If you are living abroad on a permanent basis you may be entitled to an annual increase when State Pension rates go up for pensioners who are resident in the UK but only if you have resided in a member state of the EEC or Switzerland. If you are living in a country that is covered under the reciprocal arrangement with the UK, then you will also receive an increase. Countries under this arrangement are Barbados, Bermuda, Israel, Jamaica, Jersey and Guernsey, Mauritius, Philippines, Switzerland, Turkey, USA and the separate republics of the former Yugoslavia. Increases are also payable in Sark under the UK domestic legislation.
Q & As
- Which countries have a reciprocal agreement with the UK?
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If you have resided in a member state of the EEC or Switzerland you will be covered under the reciprocal arrangement. Likewise, the other countries under this arrangement are Barbados, Bermuda, Israel, Jamaica, Jersey and Guernsey, Mauritius, Philippines, Switzerland, Turkey, USA and the separate republics of the former Yugoslavia.
- I understand that the arrangement that existed with Australia has now ended. Is this correct?
The Social Security Agreement with Australia ceased on 28 February 2001. However, if you had a period of residency in Australia which, was before the Agreement ceased, then you may, on your return to the UK on a permanent basis, use your Australian residence to help towards your State pension. If you think that this may apply to you, then you must inform the Pension Service, at the time when you are claiming your State pension, about your Australian residence.
- I have lived in a number of countries, some of which do not appear in the reciprocal arrangement list. What should I do?
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The chances are is that you may not be able to benefit from any residency outside of the reciprocal arrangement list. If in doubt, then contact the Pension Service.
- My State pension is paid by direct payment into my Post Office card account can this continue?
Yes it can and you will be able to access your account on your return. However, you cannot access your Post Office card account from abroad.
- Is there any leaflet that would provide me with more information regarding payment of my State pension should I decide to live abroad?
Apart from getting information from the International Pension Centre, the Pension Service can provide you with a leaflet that is entitled ‘Going abroad and Social Security’ (GL29). How your pension is paid to you depends on where you are living and where your bank account is and you would be advised to contact either the International Pension Centre or the Pension Service with regard to this.
- I am living abroad on a temporary basis. Am I entitled to an annual increase to my State Pension?
If you are living abroad temporarily in any other country provided that you remain ordinarily resident in the UK then, you may be entitled to an increase to your State Pension. This would normally be paid in arrears upon your return to the UK.
- Am I resident or ordinarily resident? What is the difference?
If you are physically present in the UK at some time during a tax year then you are considered as resident in the UK. Likewise, you will always be considered to be resident if you reside in the UK for 183 days or more in a tax year. If you are resident in the UK year after year after year, then you are deemed to be ordinarily resident. The guidelines are based on rulings of the Courts and the decision on your residential status will be based on the facts of your particular case.
