UK pensions and moving to Australia

You can keep your UK pensions when you move to Australia, but the rules change. The State Pension stops rising, topping up your National Insurance got harder in April 2026, and transfers carry tax traps.

The State Pension is frozen in Australia

You can claim your UK State Pension while living in Australia. But it only goes up each year if you live in the EEA, Gibraltar, Switzerland or a country with a social security agreement with the UK. Australia isn’t one of them, so your pension stays at the rate you first get abroad.

Over a long retirement, inflation makes a frozen pension worth much less. Build that into your plans.

Voluntary National Insurance after April 2026

Gaps in your National Insurance (NI) record reduce your State Pension. The rules for paying voluntary contributions from abroad changed on 6 April 2026:

• You can no longer pay the cheaper Class 2 contributions for time abroad
• You can pay Class 3 (£18.40 a week in 2026–27) if you lived in the UK for 10 years in a row, or paid 10 years of qualifying NI in total
• If you applied before 6 April 2026 you may still use the old 3-year rule, if you also apply for 2026–27 and pay by 5 April 2027
• Check your NI record and forecast on GOV.UK before you leave

UK workplace and personal pensions

• You can leave them where they are. They stay invested in the UK
• You can usually take money from them from age 55, depending on the scheme’s rules
• Tell each provider your new address and check they can pay into an overseas bank account

Once you are an Australian tax resident, and not a temporary resident, you declare UK pension income on your Australian tax return. The UK–Australia tax treaty says pensions and annuities paid to someone living in Australia are taxable only in Australia. If you take a lump sum from a UK pension more than 6 months after becoming resident, the growth since you became resident (“applicable fund earnings”) is taxed in Australia; within 6 months it can be tax-free if conditions are met. Temporary residents generally don’t declare foreign pensions. Get cross-border tax advice. See Telling HMRC you’re leaving.

Transferring to Australian super

Australian superannuation (“super”) is the workplace pension system. See Superannuation explained. To move a UK pension abroad without heavy UK tax, the receiving scheme must be a QROPS (a qualifying recognised overseas pension scheme). Check its status yourself.

Not every Australian super fund can take a UK transfer, so ask the fund first. In Australia, the amount transferred (less any taxable growth) counts towards your yearly non-concessional (after-tax) contributions cap. If you transfer more than 6 months after becoming an Australian tax resident, growth since you became resident is taxed; you can choose to have your super fund pay this at 15% instead of adding it to your own income.

Get advice and avoid scams

MoneyHelper gives free guidance on UK pension transfers. Paid advice should come from a regulated adviser who understands both countries. Be wary of anyone who contacts you out of the blue offering a transfer. Report suspected pension scams to Report Fraud.