UK pensioners living abroad miss out on almost £26,000 in state pension income over 15 years due to frozen payments, according to new analysis.
While British retirees that move abroad still receive a UK state pension, only some of them benefit from the triple lock, as it depends which country they reside in. The triple lock uprates the state pension each year in line with earnings, inflation or 2.5%, whichever is higher.
The full new state pension is currently worth £230.25 a week, or £11,973 a year.
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However, someone who retired abroad to a country 15 years ago where UK state pensions are not increased, such as Australia, Canada or South Africa, would have had their annual state pension frozen at £5,077.
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A pensioner living in the UK would have received the same amount in 2010, but they would have had it uprated each year. Over 15 years, the lost state pension for the expat amounts to £25,832, according to calculations by Interactive Investor.
Over a decade, the lost income amounts to £13,162, while a retiree who moved abroad five years ago would have missed out on £7,391.
Myron Jobson, senior personal finance analyst at Interactive Investor, comments: “Many pensioners dream of spending their golden years overseas - whether it’s for a warmer climate, an improved quality of life or to be closer to family and friends. But while the lifestyle may be appealing, it’s vital to consider how such a move could affect your state pension entitlement.
“If you move to a country where the UK has no uprating agreement, your state pension will be frozen at the level you first receive it. That means you won’t benefit from the valuable triple lock increases that pensioners in the UK enjoy each year, and over time, that can seriously erode your spending power.”
The International Consortium of British Pensioners (ICBP) estimates that 453,000 pensioners do not receive annual upratings.
It has spent years lobbying for a change in government policy so that all British expat pensioners get their state pensions uprated.
We look into which countries are affected by frozen state pensions, how much British expats lose out on – and how you can prepare if you’re thinking of retiring abroad.
Which countries are affected by frozen state pensions - and why?
More than 40% of the 1.12 million pensioners living overseas are affected by frozen state pensions, according to Department for Work and Pensions (DWP) data. This equates to just under 4% of the 12.7 million people receiving state pension payments.
British citizens who move to a country in the European Economic Area, Gibraltar, Switzerland, and other countries including the USA and Jamaica receive annual increases to their state pension.
However, countries including Australia, Canada, New Zealand, India, Pakistan, Bangladesh, many Caribbean islands, and all African countries do not benefit from any kind of uprating.
The ICBP says there is “no reason other than this situation has existed for over 70 years”.
The UK government says the reason is due to which countries have reciprocal social security agreements with the UK.
A petition to end “frozen pensions” has attracted more than 174,000 signatures.
It claims that the “UK government continues to refuse to enter into any new agreements – agreements that would end this pension injustice for all”, adding: “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.”
How much money do expats receive from their frozen state pensions?
According to calculations by Interactive Investor last year, based on data from the DWP, those living overseas with a frozen state pension receive just £3,000 a year on average – about £7,000 less on average than retirees living in the UK.
The payment gap widens significantly with age as the impact of the freeze compounds over time. Based on data in 2024, those in their 90s with a frozen state pension receive just £1,896 each year on average, compared to £10,809 for a pensioner living in Britain – a difference of £8,913.
Jobson says the frozen state pension policy can significantly impact UK expats’ “financial comfort in later years, leaving some facing poverty in old age”.
The ICBP gives the example of Anne Puckridge, a 100-year-old World War Two veteran who lived and worked in the UK until the age of 76, paying her National Insurance in full. Anne’s pension was “frozen” at £72.50 per week when she left the UK for Canada in 2001 to be closer to her daughter and grandchildren. Had she stayed in the UK, she would be receiving state pension payments worth £169.50 per week.
However, many “frozen pensioners” receive less than Anne: 49% receive £65 per week or less, according to the consortium.
How can I plan for a retirement abroad?
If you’re thinking of retiring abroad, check to see if your state pension will be frozen in that country. The DWP has a handy list showing the countries where it does pay an annual increase to the state pension.
If you are going to suffer from a frozen state pension, Jobson says planning ahead is key, and it could be worth speaking to an independent financial adviser to fully understand the implications of retiring abroad.
According to Interactive Investor, British pensioners considering retirement overseas during the current tax year could miss out on nearly £70,000 in state pension payments over 20 years if their entitlements are frozen when they move.
This assumes full state pension payments are uprated by 3.7% in April 2026 (the Office for Budget Responsibility’s inflation forecast for September 2025), and by 2.5% per year thereafter in line with the triple lock.
Jobson suggests: “Consider topping up any gaps in your National Insurance record to maximise what you’re entitled to. Deferring your state pension can boost the amount you get, though it won’t help with uprating in frozen countries.
“Most importantly, building a strong private pension pot can help provide the financial cushion you’ll need to maintain your standard of living abroad, regardless of state pension freezes. Budgeting carefully and preparing for rising living costs can go a long way in making your retirement overseas both comfortable and secure.”
We look at what happens to your pension if you retire abroad in a separate piece.
