Somewhere between cancelling your broadband and booking the airport taxi, did you ask yourself: “Wait, what happens to my private pension if I move abroad?” The short answer is that:
- Your plan keeps running
- Your money stays invested
- You still choose how to draw it
The longer answer is a bit more complex, which we’ll get into throughout this article. But the bottom line here is that you’re still in charge of the whole process. Let’s explore the details:
The Big Picture
Most private plans today sit under defined contribution pensions, which means the size of your pot depends on what you paid in and how the investments performed. Fortunately, that structure travels well because the contract lives with the provider, not your postcode.
So your funds stay with your UK pension provider even when your home address changes, and you keep control of switches and withdrawals through the usual secure portal.
And when you start taking income, you can direct pension payments to a UK bank account you kept for convenience or to an overseas bank account you use every day. Both routes work, and you can switch between them if your plans change later.
The moment you draw from the pot, tax becomes a thing. Some countries look at residency first and expect you to pay tax locally. In other cases you still pay UK tax on the income because the rules give the UK first call.
But many pairs of countries also have a double taxation agreement, which sets who gets first dibs here and how the other side treats the same income. It’s a bit long sorting these forms out, but completing the right declaration usually stops the two systems from charging you twice, which is obviously the goal.
Tax, Residency, The State Piece
Your contributions earned tax relief on the way in, which helps explain why revenue authorities care about where you live when money flows out. So if you now live abroad, the local office may ask for a simple declaration, while the UK may stand back if the treaty says so.
But without a treaty, the UK can actually withhold and make you reclaim it later. It isn’t ideal, but it is linear – and it works better when you read the notes and attach proof rather than guess. You don’t need specialist jargon to sort it out. You just need clear instructions and a copy of your residency evidence.
People often mix private plans with the state side and needlessly create a bit of confusion for themselves. You can claim the UK state pension while living outside the country – which is the essence of a state pension abroad – but it runs on different rails to your private pot.
The state amount rests on your history of National Insurance (NI) contributions and the rules on uprating where you live. Your private plan sits with your provider, not with the government, and you decide the timetable as long as you meet the minimum age.
Getting the Money From A to B
Ideally, you want the income to land cleanly. Some movers keep a UK bank account open because it smooths the currency swings and helps with bills that still arrive in GBP. Others prefer a foreign bank account so they can budget in the currency they actually spend.
Your provider can pay either way. You can point the money to an overseas account and change instructions later if you settle somewhere new. Before you rely on the arrangement, send a small test payment and confirm the routing details. A difference of a day can move the rate enough to notice, so choose a pattern that suits your cash flow instead of reacting to headlines.
Transfers and Overseas Schemes
You don’t need to transfer your pot to benefit from living elsewhere. Leaving it in the UK simplifies your protections and contact points. Transfer can still make sense if you plan to stay long term and want local features, but the receiving plan has to meet a standard.
In UK language, you will see recognised overseas pension scheme used as a label for destinations that qualify, and you will also see qualifying recognised overseas pension in guidance.
Basically, both of these markers exist to show the scheme meets a published bar. Since recent reforms, you also need to consider the overseas transfer allowance, which frames how much you can move without extra charges.
The allowance links to your lifetime benefits history, so ask your provider for a written figure before you take advice or sign a form. Any reputable adviser will:
- Confirm the receiving scheme’s status
- Explain costs in plain English
- Model how the income would be taxed where you live
So if anyone rushes you or makes you a promise that sounds too neat, ask for the details in writing.
Practical Steps That Keep Things Calm
Start with your provider. Tell them you’re moving and update your address; ask which documents they need to keep talking to you. If you plan to draw soon, agree the route for pension payments and decide whether they will land in GBP or locally.
It also helps if you give the team two ways to reach you so a missed message doesn’t turn into a missed payment. Keep scans of passports and bills in a secure place because identity checks tend to appear when you least expect them.
Think about the calendar. If you split a tax year between countries, the timing of a withdrawal can change how much you keep. You may choose to hold off until you settle your residency, or you may prefer to stagger small amounts.
If you still add money to a plan, check what your new status allows. Non-residents face different limits, and the relief rules change depending on the provider and the product.
Others keep a small regular payment for discipline. Either route can work if you tie it back to your tax position and your cash flow rather than habit alone.
Keep the Basics in View
The system looks fairly complicated until you bring it back to a simple aim. Basically, you want your income to arrive where you live, and you want the tax to follow the right set of rules – double taxation is the last thing you want.
And you reach that aim when you keep your provider informed and choose a route for payments. Then match decisions to the framework that covers you. You won’t erase admin entirely, but you can turn it into a quiet routine you review a couple of times a year and then get on with life.
How Upscore Can Help
If you want a clean way to travel with your records and proof, consider Upscore’s Finance Passport! Our platform lets you:
- Keep key details together
- Store identity checks you repeat
- Show a neat history when a bank or provider asks
Having all that stuff in order helps you set the right destination for payments and adjust quickly if your plans shift again.
