Retiring Abroad as a Briton
Her daughter Maeve lives in Bristol and has asked for one thing: look at the figures before choosing.
Picture a widow named Elspeth, 66, who lives in Leeds. Her husband Torquil died two winters ago, and the house has grown large for one. Her daughter Maeve lives in Bristol and has asked for one thing: look at the figures before choosing. Elspeth has two flats in mind. One is in southern Spain. The other is in Chiang Mai, in Thailand, where her old friend Hamish has lived for three years.
Elspeth and Hamish each worked 35 years and each has the full new State Pension, which is £241.30 a week on the gov.uk page we read (the page does not print the tax year; we believe it is 2026 to 2027). That is £12,547.60 over 52 weeks. Their records are the same. Their addresses are not.
| Same record, two addresses | Southern Spain | Chiang Mai, Thailand |
|---|---|---|
| Yearly rise in the State Pension | Yes, Spain is on the list | No, Thailand is not on the list |
| UK-funded state healthcare (called an S1) | May be available to a State Pension holder | Not available; private insurance is the usual route |
| Staying without a visa | 90 days in any 180, then a Spanish visa | Not looked at here; ask the Thai embassy |
"Mine has not moved since I claimed," Hamish told her on a video call. "Gov.uk says the yearly rise goes to people in some countries, and Thailand is not among them."
"Does it go up if you come home?" Elspeth asked.
"It does, to the current rate. What I never found is which amount mine is stuck at. The day I claimed, or the day I left."
The page does not say. The International Pension Centre can.
Here is a small illustration, not a forecast. The yearly rise is the highest of earnings growth, prices or 2.5 percent. If it were only 2.5 percent a year, £241.30 would become about £273 after five years, which is about £31.70 more each week than a pension that stays at £241.30. That is roughly £1,650 a year. Real rises may be higher.
Spain would also change who pays for care. Maeve's question was the practical one: "Mum, who pays if you are ill?" For a State Pension holder living in Spain, the S1 may mean the UK pays for state care there. A person who also draws a Spanish state pension cannot hold one. In Thailand, Hamish buys private cover.
Neither flat comes with the Winter Fuel Payment. The gov.uk page says it is not paid to people who usually live outside England, Wales or Northern Ireland.
An American reading this may notice a parallel. A US citizen's Social Security is generally paid in most countries, and Medicare mostly stops at the border, so the health question follows an American too.
You could…
- Ask the International Pension Centre whether the country brings yearly rises, and which amount a frozen pension is fixed at.
- Ask the consulate of the country about its visa for retirees and what health cover it asks to see.
- Ask the UK tax office, or an accountant, how the residence test and the tax treaty would apply.
If a British neighbor of yours abroad had one question they wish they had asked before the flight, what was it? Add it below, for the next Elspeth.
Figures are estimates for planning, based on public data. Rules change, so each figure shows the year it applies to; ask the official office before you act.
Sources: gov.uk pages on State Pension if you retire abroad, rates of State Pension, countries where an annual increase is paid, new State Pension, Winter Fuel Payment, travel to the EU Schengen area, and tax when you live abroad; NHS page on planning healthcare when moving abroad (nhs.uk).
Tell us in the comments