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\t\tRetirees who move abroad could thousands off their state pension\t<\/p>\n\t\t\tMonday 13 April 2026 4:00 pm\n\t\t\t<\/p>\n
\t\tRetirees who move abroad could thousands off their state pension\t<\/p>\n
British pensioners eyeing a retirement in the sun could see thousands wiped off their state pension, top financial planners have warned.<\/p>\n
Brits planning to retire overseas during this tax year could forgo more than \u00a377,000 in state pension income over the next 20 years, if they opt to move to a country where payments are frozen, according to analysis from wealth manager Rathbones.<\/p>\n
Those swapping rain for sun<\/a> also opt to lose access to the UK\u2019s triple lock, which ensures the state pensions rise each year by inflation, average earnings growth or a minimum of 2.5 per cent.<\/p>\n The mechanism was introduced in 2010 in a bid to ensure purchasing power of pensions kept pace with living costs and the wider economy, but has caused controversy in recent years due to its high costs and long-term affordability.<\/p>\n The damage caused<\/p>\n But moving to certain countries, including popular choices Canada, Australia and New Zealand, state pension payments are frozen at the first rate received, with no future increases.<\/p>\n Olly Cheng, a Financial Planning Divisional Lead, at Rathbones, said: \u201cWe often speak to people hoping to retire overseas, many of whom don\u2019t realise that this decision could significantly affect their state pension entitlement.\u00a0\u00a0<\/p>\n \u201cThe state pension is uprated every year<\/a> under the triple lock to help keep pace with the rising cost of living. If your pension is frozen when you move abroad, those increases stop entirely.\u201d<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tOlder Brits avoid investing over fears of losing money<\/a><\/p>\n Over time \u201cinflation steadily eats away at its value\u201d, meaning it buys less each year in real terms and quickly snowballs into losses of \u201ctens of thousands of pounds\u201d.<\/p>\n Cheng said: \u201cOnce your pension is frozen, there\u2019s very little you can do to undo the damage.\u201d\u00a0<\/p>\n Thousands affected<\/p>\n Pensioners who opt to live overseas for 20 years could lose up to \u00a377,585 in state pension income, while those who go for ten years could be more than \u00a318,600 worse off.<\/p>\n