UK state pensions are frozen (not increased annually with inflation) for retirees living in most countries outside the UK, specifically, in places without a reciprocal social security agreement. Over 90% of affected pensioners reside in Commonwealth nations, most notably Australia, Canada, New Zealand, and South Africa, as well as many African and Caribbean countries.
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.
According to the Department for Work and Pensions (DWP), over 40% of the 1.12 million pensioners living overseas are affected by the frozen state pension.
A frozen workplace pension, or 'preserved pension' is simply one that isn't paid into anymore. This usually happens when you leave a job, so you and your employer stop contributing. Any money in there still belongs to you and will provide you with an income when you retire.
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A frozen defined contribution pension can still grow even if it's not receiving regular contributions. As it's still invested, its value will move depending on the performance of your funds. In a personal pension, fees and market volatility can reduce your pension's value, meaning it could decrease even while frozen.
From 20 September 2025, the full pension is available, under the assets test, for homeowner singles whose assessable assets are under $321,500 – for homeowner couples the number is $481,500. The numbers for non-homeowners are $579,500 and $739,500 respectively.
Services Australia outlines the following: If you're overseas for up to 6 weeks — Generally, your pension payments will continue as normal if you're travelling for less than 6 weeks. If you're overseas for more than 6 weeks — Once you reach 6 weeks, your pension supplement will drop to the basic rate.
If you earned Social Security benefits, you can visit or live in most foreign countries and still receive payments. Look up the country on the Payments Abroad Screening Tool to find out if you can collect your Social Security payments or survivor benefits.
the "freezing" policy was introduced in 1946 when a new UK insurance scheme was being set up together with much increased benefits. Pensioners who had already moved overseas to the dominions, as we were known then, would not contribute to the new scheme so their pensions were frozen.
When a company freezes its pension plan, that typically means the employees won't be able to accumulate any additional future benefits after the freeze takes effect, which is what GE has done. Retired workers who are already receiving benefits are not affected by pension freezes.
We identified three European countries where the state pension covers more than twice the basic cost of living: Luxembourg (225.00%), Italy (209.60%) and Finland (208.23%). In all three countries, the state pension is partly calculated to reflect the working-life salary of the retiree.
Pension benefits are typically a fixed monthly payment in retirement that is guaranteed for life. Some pension benefits grow with inflation. Other pension benefits can be passed on to a spouse or dependent.
Personal and workplace pensions
If you're in a personal or workplace pension scheme, moving abroad shouldn't have any effect: your pension should continue to be paid in full. you're normally entitled to any rises regardless of where you live in the world.
Happiest places to retire in the U.S. often highlight good quality of life, affordability, and community, with recent lists from U.S. News & World Report pointing to Midland, MI, as #1 for 2026, alongside other top contenders like Naples, FL, Ann Arbor, MI, and Colorado cities (Boulder, Fort Collins), while Florida, Pennsylvania, Texas, and the Carolinas consistently feature strong retiree populations due to factors like weather, taxes, and amenities, though colder climates are gaining traction.
Of the countries under study, The Netherlands, Austria, Luxembourg and Denmark offer their citizens the best protection against social risks. The citizens of Greece, Spain and Romania are found to be less protected.