State pension income is dependent on National Insurance records, with a minimum of 10 years of contributions required to receive income in retirement. To receive the full amount £175.20 per week, a person will need at least 35 years of contributions.
If a person wishes to retire abroad, they’ll be able to claim a UK state pension in most countries.
The state pension will increase each year but only if the claimant lives in the EEA, Gibraltar, Switzerland or countries that have an agreement with the UK.
State pension claims made abroad can be done within four months of reaching state pension age.
To process the claim, claimants can either contact the International Pension Centre or send an International Claim form to the International Pension Centre.
State pensions can be paid into a bank based in the country they’re living with or a bank or building society based in the UK.
Claimants can use an account held in their name, a joint account or someone else’s account if they have their permission and keep to the terms and conditions of the account.
If a person wants to receive their pension into an international account, they’ll need the international bank account number (IBAN) and bank identification code (BIC) at the ready when claiming.
The money will be paid in the local currency, which means the amount received may change due to exchange rate differences.
Claimants based abroad can choose to be paid every four or 13 weeks.
Should a person’s state pension be under £5 per week, claimants will be paid once a year in December.
UK residents may have to pay UK tax on their state pension if they live abroad but are classed as a UK resident for tax purposes, with the amount paid depending on their income.
Additionally, people may end up seeing their state pension taxed in both the UK and the country where they live.
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