Retiring Abroad: The Financial Checklist for Internationally Mobile Individuals

Retiring abroad is one of the most significant financial decisions an internationally mobile individual can make. The months before a permanent international move are a critical window to put financial foundations in place — pension arrangements, tax residency, healthcare, estate documents, and currency accounts — so that retirement begins on solid ground rather than with a backlog of unresolved complexity. This guide provides a structured checklist.

1. Pension Arrangements

Review and consolidate UK pensions

Before leaving, obtain a full picture of your UK pension arrangements. Contact all former employers to confirm deferred pension values, and obtain a current transfer value if relevant. For defined contribution pensions, consider whether consolidating multiple small pots into a single SIPP before retirement simplifies your income arrangements.

For defined benefit pensions, do not transfer without specialist independent advice. The guaranteed income from a DB pension is extremely valuable, and the transfer value rarely delivers an equivalent in practice.

Check and top up your NI record

Obtain a State Pension forecast from the UK government (available at gov.uk) and review your National Insurance record. If you have gaps that reduce your State Pension entitlement, voluntary NI contributions — particularly Class 2, which are available at low cost for those who have been employed or self-employed abroad — may be worth making. The deadline for paying voluntary contributions for years going back to 2006 was extended to April 2025, but contributions for recent years remain available. Take advice on the cost-benefit for your circumstances.

Overseas pension decisions

If you have accumulated pension entitlements in other countries during your career, obtain statements confirming your benefits and the rules for claiming them as a non-resident. Some overseas state pensions can be claimed from abroad; others require notification of your leaving and may have different tax treatment depending on your country of retirement.

QROPS considerations

Transferring a UK pension to a Qualifying Recognised Overseas Pension Scheme may be appropriate in specific circumstances, but an overseas transfer charge of 25% applies unless you are resident in the same country as the QROPS. Given the complexity and the risk of poor outcomes, take specialist independent advice before considering any overseas transfer.

2. UK State Pension: Claiming from Abroad

You can claim the UK State Pension from abroad. HMRC will write to you shortly before State Pension age, or you can claim proactively online or by post. Key points:

• Uprating: whether your pension increases annually depends on your country of retirement. EU/EEA countries, the USA, and several other countries with reciprocal agreements receive annual cost-of-living increases. Many others, including Australia, Canada, and New Zealand, do not — the pension is frozen at the rate when first paid.
• Payment: pensions are paid in sterling to a UK bank account, or in local currency to an overseas account (though overseas payment rates are typically less favourable). Maintain a UK bank account if possible.
• Tax: UK State Pension is taxable income. Whether it is taxed in the UK, your country of residence, or partly both depends on the applicable double taxation treaty.

3. Tax Residency and Domicile

Establish your tax residency position clearly

Moving abroad changes your tax residency, but the timing matters. In the UK, the Statutory Residence Test determines whether you are UK resident in any given tax year. Leaving part-way through a year can result in split-year treatment, which affects when you become a non-UK resident for tax purposes.

Consider your tax residency in your destination country as well. Many countries treat you as tax-resident from the date of arrival; others have a qualifying period. In the EU, some countries have favourable non-habitual resident regimes (Portugal's NHR, although this has been reformed) or flat-tax regimes for new residents (Cyprus's 60-day rule; Malta's flat-tax regime).

Residence history drives IHT exposure

From 6 April 2025, UK Inheritance Tax exposure is based on residence rather than domicile (the old domicile and "deemed domicile" tests, including the former 15-year deemed-domicile rule, no longer apply). Broadly, you are a "long-term UK resident" — with your worldwide estate within the UK IHT net — if you were UK-resident in at least 10 of the previous 20 tax years. Importantly, this status does not end the day you leave the UK: it can persist for a number of years afterwards before it falls away. Clarify your residence history and its implications for estate planning before retirement.

Notify HMRC

When you leave the UK permanently, file form P85 with HMRC to notify them of your departure. This initiates the process of amending your UK tax position and ensuring you are not overtaxed on UK income received as a non-resident.

4. Healthcare

Healthcare planning is one of the most time-sensitive items on the checklist, because gaps in cover — particularly in the period between leaving the UK NHS and establishing new cover — can be costly.

• Private international health insurance: arrange cover before you leave. Insurers will not cover pre-existing conditions diagnosed after you take out a policy if there has been a break in cover. Multi-territory policies that cover you in multiple countries provide the most flexibility if your retirement involves travel.
• Local state healthcare: research whether your destination country's state healthcare system is accessible to foreign retirees. In Cyprus, for example, the GESY General Healthcare System is open to legal residents. In some EU countries, UK retirees previously benefited from S1 arrangements; the current position for UK nationals retiring to EU countries should be verified against current rules.
• EHIC/GHIC: if you are a UK national, the Global Health Insurance Card gives access to state healthcare in EEA countries at local rates for temporary stays. This is not a substitute for private cover for those living abroad permanently.

5. Wills and Estate Documents

Review and update your will

If your existing will was drafted without considering assets in other jurisdictions, it may not be effective for those assets. Generally, a UK will is effective for UK assets; for property or significant assets in other countries, separate jurisdiction-specific wills drafted under local law are advisable.

Under EU Succession Regulation (Brussels IV), UK nationals retiring to EU countries can elect for UK succession law to apply to their estate rather than the law of their EU country of residence. This must be expressly stated in the will and is a valuable planning tool for those who would otherwise face forced heirship restrictions under continental civil law.

Ensure your will is up to date, clearly identifies all assets and beneficiaries, appoints appropriate executors who are accessible in the relevant jurisdictions, and has been reviewed by a solicitor within the last three to five years.

Lasting Power of Attorney

A UK Lasting Power of Attorney (LPA) covers UK assets and decisions but may not be recognised abroad. Consider whether a locally applicable POA is required in your country of retirement. In many countries, a notarised power of attorney prepared under local law and, where required, apostilled, is the appropriate instrument.

At minimum, ensure that someone you trust has the authority to manage your UK financial affairs (bank accounts, investments, UK property) and make health and welfare decisions on your behalf if you lose capacity.

6. Banking and Currency Accounts

Maintain a UK bank account

Many UK banks are restrictive about maintaining accounts for non-residents. Before you leave, review your current banking arrangements and — if necessary — move to a bank that explicitly serves non-residents (several private banks and international banks offer this). Receiving UK State Pension, UK pension income, and managing UK property expenses requires a functioning UK account.

Establish multi-currency accounts

A multi-currency account allows you to receive income in sterling, hold it, and convert to your spending currency at a time and rate of your choosing — rather than incurring forced conversion on every pension payment. Services are available through private banks and several digital banking providers.

Consider foreign exchange strategy

For regular income conversion (monthly pension payments, regular transfers), setting up a forward contract or standing order with a foreign exchange broker rather than a bank can reduce conversion costs meaningfully over time.

7. Insurance

Beyond healthcare, review:

• Life insurance: if you have whole-of-life or term insurance, check whether the policy remains valid for a non-UK resident policyholder, and notify the insurer of your move.
• Property insurance: if you own UK property, ensure it remains covered as a non-resident landlord or second-home owner.
• Contents and liability insurance for your new overseas home.

8. Notification List

Before leaving, notify: HMRC (form P85), DWP (State Pension), all UK pension providers, UK bank and investment accounts, DVLA (if retaining a UK driving licence), and the electoral roll (if applicable).

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The information in this guide is for general educational purposes only and does not constitute financial, tax, or legal advice. Rules vary by jurisdiction and change over time. Seek independent professional advice before making any financial or legal decisions in connection with retiring abroad.

How Global Investments Can Help

Global Investments has over 32 years of experience helping internationally mobile individuals prepare for retirement abroad. We provide co-ordinated advice across pension planning, international tax residency, healthcare strategy, estate planning, and multi-currency income structuring. Whether you are two years from retirement or on the eve of your move, our advisory team can help ensure your financial foundations are in place. Contact us to arrange a pre-retirement review.