Whether you are thinking about retiring in another country or if you have already planned your move, transferring your pension abroad may be an option that you have considered. However, doing this comes with some complications attached.
Over time, the UK has continued to see more and more people moving abroad. According to the Office for National Statistics, an estimated 246,000 British nationals emigrated to another country from the UK in the year ending December 2025, with around 136,000 more Brits leaving than arriving in 2025.
Below, we’ve explored how transferring your pensions abroad works, what you need to consider and how comparing money transfer providers can help you get the best possible deal when transferring large amounts of money overseas.
What are your options when accessing your pension abroad?
Leaving your pension in the UK
You may opt to leave your pension pot in the UK when living abroad. In this instance, your pension will continue to be managed in the UK, with the money received being paid out in pounds and taxed as UK income.
This is usually the most straightforward option, but because the money is being paid out in pounds in the UK, transferring the money could introduce additional exchange fees and you may also wish to create an international bank account where you can relocate the income.
Because exchange rates change daily, it is crucial to ensure that you are getting the best deal on large money transfers. Using FXcompared’s money transfer comparison tool can help you compare exchange rates and fees across well-known money transfer providers and help you save money.
Transferring your pension abroad to a QROPS provider
If you do wish to transfer your pension abroad, you’ll need to transfer your pension savings to a Qualifying Recognised Overseas Pension Scheme (QROPS) that is recognised by HMRC.
There may be various taxes associated with making this transfer. If the scheme you are looking to transfer to is not a QROPS, your UK pension scheme may refuse to make the transfer or you may have to pay at least 40% tax on the transfer.
Even in approved cases, depending on where the scheme you are transferring to is based and your overseas transfer allowance, you may have to pay 25% tax on the transfer. However, the UK Government website highlights that there are instances when you may not have to pay tax on a QROPS transfer, including:
- You live in the country where the QROPS is based
- If you transfer to a QROPS provided by your employer
- If the transfer does not exceed your available overseas transfer allowance (£1,073,100, or higher if you hold a protected allowance)
Crucially, it is your responsibility to check that the scheme you are transferring to is qualified under the QROPS scheme and whether you will need to pay tax or transfer charges on the move.
What should I consider when choosing a pension scheme?
To transfer your pension overseas, make sure that you understand the different features of how the overseas scheme works – ask yourself the following questions:
- What features/benefits does the scheme offer and do I prefer these to my existing scheme?
- What fees will I need to pay?
- Will my money be invested for me, or am I able to choose my own investments?
Crucially, you’ll need to find out if the scheme complies with QROPS rules, as if it does not this can significantly increase the amount you will have to pay to transfer.
How to transfer your pension overseas
To complete a pensions overseas transfer, you’ll need to download a form from the UK government website and then provide this to your UK pension scheme administrator.
This form will require you to provide various information, including:
- Name, address, date of birth
- Contact details
- The amount of your overseas transfer
- Details of the QROPS scheme you are intending to transfer to
- Details around your employment
Still unsure about transferring your pension abroad? Think about seeking out a financial adviser who can help you to plan out your finances and help you take the right course of action to get the most out of your money.
Using FXcompared to compare money transfer providers overseas
If you do decide to keep your pension in the UK and transfer payments to another bank account overseas, these can be subject to additional fees depending on exchange rates and how much money transfer providers may charge to send money abroad.
Transferring money overseas can come with high costs attached, and if you aren’t careful this can whittle down your savings over time. Thankfully, there are a number of specialised, trustworthy money transfer providers out there that can help you send money abroad safely.
FXcompared can help you compare the cost of sending money through these providers across certain corridors. Use our comparison tool today, or to find out more about transferring pensions abroad, read our comprehensive personal guide here.
