Retiring abroad: what changes and what follows you
5 min read
Cost of living, tax residence, healthcare and currency — the four things that decide whether moving abroad in retirement helps or hurts.
Cost of living is the biggest lever
Moving somewhere meaningfully cheaper can cut the pot you need more than any investment decision. Compare the whole basket though — housing, energy, transport, insurance and healthcare — not just restaurant prices.
Tax follows residence, not sentiment
Where you are tax resident usually determines how your pension income is taxed, subject to double taxation treaties. Some countries tax foreign pensions lightly; others do not. Check before you commit, because unwinding a move is expensive.
Healthcare and state entitlements
State pension payments can often be received abroad, but annual increases and healthcare access vary by country and agreement. These details are worth confirming in writing.
Currency risk is permanent, not temporary
If your income is in one currency and your spending is in another, exchange rates become part of your retirement plan for life. Keeping some income or savings in the currency you spend reduces the exposure.
Run the numbers
Questions people ask
Will I still get my state pension abroad?
Usually yes, though whether it keeps rising each year depends on the country and any agreement in place. Confirm with the relevant government body.
Should I move my pension too?
Not automatically. Transferring can trigger charges or lose valuable benefits, and staying put while living abroad is often the better answer.
Educational content and estimates, not regulated financial advice. Rates and limits change — confirm current figures with the official government source for your country.
Where to next?
Check your retirement readinessPut your own figures in and see the gap.
- How much do you actually need to retire?
- Pension basics, explained without the jargon
- Pension tax relief: what it's really worth