Pensions & Benefits: A Plain-English Guide

Overview

Your pension and benefits are some of the most important financial assets you have. Yet many people — especially expats — are unsure what they are entitled to, when they can access it, and what happens to it when they die. This guide explains the key things you need to know in plain English, with links to the official sources so you can check your own situation.

Key Facts

• ✓The full new State Pension is currently £221.20 per week (2024/25 tax year).
• ✓You need at least 10 qualifying National Insurance years to receive any State Pension.
• ✓You need 35 qualifying years for the full new State Pension.
• ✓You can check your State Pension forecast for free on the GOV.UK website.
• ✓The State Pension age is currently 66 for both men and women.
• ✓Expats can usually receive their UK State Pension abroad, but it may not increase each year in all countries.
• ✓Pension Credit tops up your weekly income if you are over State Pension age and on a low income.
• ✓Attendance Allowance is available if you need help with personal care — it is not means-tested.

Step by Step

1. 1

   Check your State Pension forecast

   Visit the GOV.UK State Pension forecast tool. You will need a Government Gateway account. The forecast tells you how much you are likely to receive and when, and shows any gaps in your National Insurance record.

2. 2

   Check for National Insurance gaps

   If you have gaps in your NI record — perhaps from years abroad, career breaks, or self-employment — you may be able to pay voluntary contributions to fill them. There are deadlines for doing this, so check sooner rather than later.

3. 3

   Locate all your workplace and private pensions

   If you have worked for multiple employers, you may have several pension pots. Use the government's Pension Tracing Service to find any lost pensions. Gather the provider name, policy number, and estimated value for each one.

4. 4

   Check what benefits you may be entitled to

   Use the government's benefits calculator or speak to Citizens Advice. Many people — including those with modest savings — are entitled to Pension Credit, Council Tax Reduction, or help with NHS costs. Do not assume you will not qualify.

5. 5

   Understand what happens to your pension when you die

   Most workplace and private pensions let you nominate a beneficiary. Make sure your nomination is up to date. The rules vary by pension type — defined benefit pensions may pay a spouse's pension, while defined contribution pots can often be passed on tax-efficiently.

6. 6

   Record everything in your vault

   Write down each pension provider, policy number, contact details, and estimated value. Include your State Pension reference number and any benefits you receive. This information is invaluable for your family if they need to manage your affairs.

Frequently Asked Questions

Can I get my UK State Pension if I live abroad?

Yes, in most cases. You can receive your UK State Pension in most countries. However, the annual increases only apply if you live in the UK, the European Economic Area, Switzerland, or a country with a social security agreement with the UK. If you live elsewhere — such as Australia, Canada, or New Zealand — your pension may be frozen at the rate when you first claimed it.

What is Pension Credit and do I qualify?

Pension Credit is a means-tested benefit for people over State Pension age on a low income. It tops up your weekly income to a minimum level. You may qualify even if you have some savings or a small private pension. Many eligible people do not claim it — check the GOV.UK eligibility checker or call the Pension Credit claim line.

What is the Pension Tracing Service?

The Pension Tracing Service is a free government service that helps you find contact details for workplace or personal pension schemes you may have lost track of. It does not tell you whether you have a pension with a provider — you need to contact the provider directly to confirm that.

What happens to my pension when I die?

This depends on the type of pension. Defined contribution pensions can usually be passed to a nominated beneficiary and may be free of inheritance tax if you die before 75. Defined benefit pensions typically pay a reduced pension to a surviving spouse. State Pension does not automatically pass to a spouse, though there may be some entitlement based on their NI record.

Can I defer my State Pension?

Yes. If you delay claiming your State Pension, it increases. For every 9 weeks you defer, your pension increases by 1% — roughly 5.8% for each full year of deferral. Whether this makes financial sense depends on your health, other income, and how long you expect to live.

What is Attendance Allowance?

Attendance Allowance is a tax-free benefit for people over State Pension age who need help with personal care because of a physical or mental disability. It is not means-tested — your income and savings do not affect your eligibility. There are two rates depending on the level of care needed.

Official Resources

These links go directly to official government and trusted organisation websites.

• Check your State Pension forecast

  See how much State Pension you could get and when

  GOV.UK
• Pension Tracing Service

  Find contact details for lost workplace or personal pensions

  GOV.UK
• Pension Credit eligibility checker

  Check if you qualify for Pension Credit

  GOV.UK
• Benefits calculator

  Find out what benefits you may be entitled to

  GOV.UK
• Attendance Allowance

  Help with personal care costs for over-State-Pension-age adults

  GOV.UK
• State Pension if you live abroad

  How your State Pension works if you live outside the UK

  GOV.UK
• MoneyHelper — Pensions guidance

  Free, impartial guidance on pensions and retirement planning

  MoneyHelper (UK)