Moving to Spain - About Your Pension

A UK national, a Dane, a Swede or Norwegian has the right to live in Spain by virtue of their countries' membership of the European Economic Area.

Pensions

If you are retiring abroad, you can continue to receive your UK State pension. If you are moving permanently to Spain, you should get yearly increases in your pension.

A.  Before you leave the UK calculate your retirement income by obtaining and completing a form BR19 from the Retirement Pension Forecasting and Advice Unit (RPFA) on 0044(0) 191 218 7585 for a state pension forecast. This is obtainable up to four months before you reach the UK pension age. The forecast you receive - subject to your general entitlement - will tell you what your pension is at the date received and whether or not you will get more by the time you reach UK pension age. Please note if you have already moved, and are paying local Spanish social security payments, that this forecast will not include your local contributions.

B.  You should write to The UK Pensions Service informing them that you are moving to Spain and give them your new address. Their address is International Pension Centre, Tyne View Park, Newcastle-upon-Tyne NE98 1BA Telephone: +44 (0) 191 218 7777; Fax: +44 (0) 191 218 3836.

C.  Please note that the state pension age and entitlements may vary between Spain and the UK. To check on your pension rights in Spain we recommend that as a first step you should look at www.ukinspain.com/english Which is a UK government website dedicated to providing information for those re-locating to Spain from the UK.

D.  To obtain your UK State pension in Spain you will need to complete a claim form from the Pensions Service. This is also normally available four months before you reach the UK pensionable age. It asks you if you want to claim a UK retirement pension and for details of any periods of residence and state insurance you have in other countries. If you are living in Spain and claim a pension from that country, the UK Pension Service will pass details of your claim to the Spanish authorities who will process you pension in Spain.

Please note that your country of residence will affect your liability to pay tax on income over the UK personal allowance. Before you retire to Spain you should seek independent tax advice about any benefits to you of offshore banking as this could reduce your tax liability.

You should inform your local social security office, the Inland Revenue National Insurance Contributions Office (International Services) and the Department for Work and Pensions when you move and provide your contact details in Spain.

Personal and company pension schemes can usually be paid anywhere. The experience of others has shown that some company schemes, for example, will pay a pension only to a UK bank. Further, some annuity companies levy charges for each overseas payment, although others do so for free.

You may consider transferring your pension fund abroad. This would eliminate the Euro/Sterling exchange rate risk if your fund were maintained in Euros. Please note that all such international transfers must receive the prior approval of the Inland Revenue and specialist advice should be obtained from a pension's expert.