Yes, Canada and the United Kingdom have a Convention on Social Security in force since April 1, 1998, covering pension contributions, but they do not have a full reciprocal agreement for uprating (indexing) pensions. While the agreement allows for totalizing periods of contribution to qualify for benefits, UK state pensions for residents in Canada are "frozen" and not adjusted for inflation.
Yes, the pension is not indexed. However if you move back to the UK, your pension would go up to the rates payable in the UK.
The following countries have social security agreements with the UK:
When you retire to Canada, you are entitled to your UK state pension, provided you have made sufficient national insurance payments and are of retirement age. However, the amount payable will be frozen, so you won't receive any annual increases.
The Convention on Social Security between Canada and the United Kingdom (U.K.) came into force on April 1, 1998. The Convention is a limited agreement dealing only with contributions.
Most British Commonwealth countries are in the frozen list; including Australia, Canada, South Africa, New Zealand, and India, as well as British overseas territories such as the Falkland Islands. Thailand is also on the list.
Canada's 90% rule helps non-residents and recent immigrants claim full federal tax credits (like the Basic Personal Amount) if 90% or more of their net worldwide income for the relevant tax year is from Canadian sources; otherwise, credits are prorated (reduced) based on their Canadian residency period, ensuring fairness for those who weren't residents all year.
The retirement systems of the Netherlands, Iceland, Denmark and Israel were once again named the top four systems worldwide, according to the 2025 Mercer CFA Institute Global Pension Index. The same four topped Mercer's 2024 report.
In actual fact, you can be absent from Canada as long as you want. The Canadian government recognizes that citizens may travel extensively, work or study abroad. You will always maintain your Canadian citizenship. What absentia may affect is your Canadian health care coverage and income tax.
The policy of not awarding increases in some countries overseas has been followed by successive governments and continued with the introduction of the new State Pension on 6 April 2016. Essentially, the reason is cost and the desire to focus constrained resources on pensioners living in the UK.
To be eligible for the State Pension you must have reached State Pension age and have paid at least 10 years of National Insurance (NI) contributions. To receive the full State Pension you must have paid 35 years of NI contributions.
What are the best countries for UK retirees?
Leaving or returning to Canada
Your Old Age Security (and Guaranteed Income Supplement) may stop if you're away for more than 6 months and don't qualify for receiving your payments while outside Canada.
If you have lived in the UK for five years with a UK Ancestry visa, and meet some additional requirements, you can apply for indefinite leave to remain (ILR), which would allow you to live in the UK permanently. Once you have ILR, you can apply to naturalise as a British citizen, if you wish.
What's the best place for Canadians to retire?
Here are the top 10 ranking countries for average pension expenditure:
Therefore, provided you have severed primary residential ties to Canada, it is possible to maintain certain secondary ties to Canada such as maintaining a bank account, investment account or credit card. The date you become a resident of the new country you are immigrating to.
The largest single landowner in Canada by far, and by extension one of the world's largest, is the Government of Canada.
You may wish to transfer your UK pension abroad or just leave it in the UK. If you decide to leave your pension savings invested in the UK, providers can either: pay pension income into your UK bank account. pay it into a bank account in your new country.
The UK's pension system has been ranked as the 12th best system in the world, dropping one place since 2024. The Netherlands, Iceland and Denmark have held onto their spots in the top three for another year.
If you have £10,000 or less in savings and investments this will not affect your Pension Credit. If you have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.