Frequently Asked Questions about Frozen British Pensions

A lot of questions are raised about frozen British pensions as more people consider their options to get the most out of this benefit. To avoid any misconceptions about what this is about, here are some of the most frequently asked questions about having your pension frozen and how this can affect you.

What does it mean when my pension is frozen?

When transferring to other countries, your pension would ideally experience an increasing rate year after year as it adjusts to the ever-increasing cost of living and to adapt to inflation. However, there are several countries where this will not happen, and your pension will remain “frozen” at the original amount.

Why does this happen?

This is because of a long series of reciprocal agreements that the British government has with different countries all over the world. Although these agreements allow British pension to experience an increase for some countries, it would only result in frozen British pensions in others. Most of these agreements have been in place far longer than we imagine, which means that it is also not as easy to amend a lot of them.

Do I still receive my pension?

Yes, you are definitely still entitled to receive your pension no matter where you choose to move. The only difference is that you can fully maximize your pension’s potential growth in some countries, while you can only enjoy the minimum amount for others.

What choices do I have?

You can choose from the long list of countries where your pension could enjoy growth, although it is most advisable to consult an expert first before making a final decision. This would allow you to weigh the pros and cons of each of your options and would help you come up with a decision that would work out the best way for you.