Retiring abroad could wipe £77,000 off your state pension – Rathbones

Rathbones found that British pensioners retiring abroad to countries where the UK state pension is frozen could lose more than £77,000 in state pension income over 20 years. 

This is due to the pension being locked at the rate first received, with no future increases under the triple lock, according to its analysis.

A pensioner living overseas for two decades would need to find around £3,880 a year from other sources to cover the shortfall. 

After 10 years abroad, retirees could be more than £18,600 worse off, rising to over £42,000 after 15 years.

The analysis showed that nearly half a million British pensioners living overseas are already affected by the frozen pension policy. 

Since April 2016, a pensioner who moved abroad to a country where the UK state pension is not uprated has missed out on almost £19,400 in state pension payments.

Olly Cheng, financial planning divisional lead at Rathbones, said: “We often speak to people hoping to retire overseas, many of whom don’t realise that this decision could significantly affect their state pension entitlement.

“The state pension is uprated every year under the triple lock to help keep pace with the rising cost of living.