Pension Planning for UK Expats: What You Need to Know in 2025

We live in a world where working across borders is not just possible, it’s often encouraged. Whether you’re chasing career growth, new experiences, or simply a warmer climate, living abroad can be incredibly rewarding. But there’s one travel companion that’s often overlooked: your pension.

At Pyrmont Wealth, we help individuals map out their financial journeys, especially when those journeys take them overseas. If you’re a UK expat, or thinking about becoming one, this guide will help you understand how your international lifestyle could affect your pension and what steps you can take to make sure your retirement plans stay on track.

The Global Life: Full of Opportunity, Full of Complexity

Living abroad can open doors to new cultures, new careers, and perhaps even a new sense of identity. But what about your pension pot quietly growing back home in the UK? Can you keep contributing? Will you still get tax relief? Can you access your money when you need it later?

The short answer is yes, but there are a few important details to be aware of.

If You’re Working Abroad – Who Pays You Matters

Still Employed by a UK Company?

If your UK employer sends you abroad temporarily and you remain on the UK payroll, meaning you’re still paying UK income tax, your pension contributions usually continue as normal. You can carry on contributing, your employer can too, and you’ll still receive tax relief up to 100% of your UK earnings (or £3,600 gross, whichever is higher).

Working for a Foreign Company?

If you’re being paid and taxed in your new country of residence, things are a bit different. You can still contribute to your UK pension, but tax relief is limited to £3,600 gross per year, and only for the first five full tax years after leaving the UK.

Tip: Let your pension provider know you’re moving. Some may not accept overseas contributions or might require you to make certain changes.

If You’re Retiring Abroad – Can You Still Access Your Pension?

Yes, you can still receive your UK pension while living overseas, though the process may differ between providers. Some will pay directly into an international account, while others may require a UK bank account or charge fees for foreign transfers.

What About the UK State Pension?

If you’ve made enough National Insurance contributions, you can claim the UK State Pension even if you’re living abroad. However, there are a few key things to consider:

• Your pension payments may be frozen if you live in a country without a social security agreement with the UK. This means no annual increases.

• You won’t be eligible for Pension Credit if you live overseas permanently.

QROPS or SIPP: A Route to Pension Flexibility?

If you’re planning to settle overseas for the long term, a Qualifying Recognised Overseas Pension Scheme (QROPS) or an International Self-Invested Personal Pension (SIPP) may be worth exploring. These options can offer greater flexibility and wider drawdown possibilities, particularly when managed through a provider experienced in serving expats and international clients.

However, a QROPS isn’t suitable for everyone. Each scheme has its own rules, tax implications, and potential charges, which is why it’s vital to seek advice from a regulated financial adviser who specialises in cross-border pension planning.

At Pyrmont Wealth, we offer clear, tailored advice for British expats, helping you make informed decisions based on your unique circumstances and long-term goals.

Planning to Return to the UK?

If your time abroad is temporary, you may want to keep your UK pension where it is and consider opening a separate pension in Hong Kong or your host country. This dual approach offers flexibility and may allow you to take advantage of local tax benefits while preserving your UK pension entitlements.

For example, in Hong Kong, you might contribute to an ORSO (Occupational Retirement Scheme Ordinance) pension. This is a company pension scheme set up by an employer for its employee(s), registered with and regulated by the Mandatory Provident Fund Schemes Authority (MPFA). It’s a common arrangement for expatriates working in Hong Kong and may complement your UK pension planning.

When you return, you might be able to transfer your overseas pension back to the UK. This depends on the type of scheme and whether it meets HMRC’s criteria. Bear in mind that transfers aren’t usually treated as contributions and don’t qualify for tax relief.

Frequently Relocating? Consider International Pension Plans

For those with globally mobile careers, International Pension Plans (IPPs) can be a smart solution. These are retirement schemes designed for expats who move from country to country and need a consistent savings vehicle.

If you work for a multinational or relocate every few years, speak to your employer about whether an IPP is available and right for you.

What Should You Do Next?

Being an expat often means juggling different currencies, tax systems, and retirement rules. But that doesn’t mean your pension has to suffer or leave you with rigid options.

Here’s how to stay in control:

• Speak to your pension provider about overseas contributions

• Review your tax residency and employment status

• Locate and consolidate any existing UK pensions

• Explore local pension opportunities in your new country

• Consider whether a QROPS, SIPP or IPP would suit your lifestyle

• Speak to a cross-border financial planner who understands international pensions, particularly UK pensions

Final Thought: Global Life, Personal Plans

Whether you’re running a business in Hong Kong, retiring in Portugal, or enjoying life as a digital nomad, your pension planning shouldn’t be left behind. Just because your life is global doesn’t mean your finances have to be complicated.

At Pyrmont Wealth, we’re here to help you make informed, confident decisions about your financial future. Wherever your journey takes you, we’ll help make sure your pension travels well too.

Let’s plan your next chapter, together.

Get in touch for a free, initial consultation.