Transition period

The transition period lasts until 31 December 2020. During this period the UK will remain effectively part of the European Economic Area (EEA) which means, until the transition ends, most things including the treatment of pensions and State benefits will stay the same.

The transition period may be extended but it is now UK law that there can be no extension no matter what the results of this year’s negotiations with the EU are. The Government can change this through further legislation.

From 1 January 2021 this will change and how pensions and State benefits are dealt with will depend on when you started living in the country they are resident.

Living in the EEA or Switzerland by 31 December 2020

If you are a UK national living in an EEA state or Switzerland by 31 December 2020 you are covered by the Withdrawal Agreement.

You will get your UK State Pension updated every year for as long as you continue to live there. This will happen even if you started claiming your pension on or after 1 January 2021, as long as you meet the qualifying conditions.

If you are working in the EEA or Switzerland, you will be able to count future social security contributions towards meeting the qualifying conditions for your UK State Pension.

You will continue to receive any UK benefits you already receive in the EEA or Switzerland for as long as you continue to live there and meet all other eligibility requirements.

You may also be able make new claims for certain UK benefits from 1 January 2021, if you meet all the other eligibility requirements.

More information on which benefits can be claimed claim if someone lives, moves or travels abroad is available as well as general information for UK nationals in the EU.

There is also an online checker for seeing which benefits can be claimed while abroad.

Moving to an EEA state or Switzerland from 1 January 2021

If you are not covered by the Withdrawal Agreement and move to live in an EEA state or Switzerland (except Ireland) from 1 January 2021, the rules on entitlement to UK benefits in these countries will depend on the outcome of the UK’s negotiations with the EU and may change. This includes:

•    receiving certain UK benefits in the EEA and Switzerland;

•    counting future social security contributions in the EEA and Switzerland towards your UK State Pension and some other UK benefits; and

•    getting your UK State Pension uprated every year in the EEA and Switzerland.

You will continue to receive your UK State Pension in the EEA or Switzerland, as long as you meet the qualifying conditions.

If you have made social security contributions in an EEA state or Switzerland by 31 Decem-ber 2020 you can still use these to help you qualify for a UK State Pension. The social security contributions may also help you qualify for some other UK benefits such as New Style Jobseeker’s Allowance  and New Style Employment and Support Allowance.

Moving to Ireland from 1 January 2021

If you are a UK or Irish national and move to Ireland you will continue to get their UK State Pension uprated
You will be able to claim and continue to receive UK benefits in Ireland if you are a UK or Irish national, as long as they continue to meet the eligibility requirements.

Pensions and benefits paid by an EEA state or Switzerland

Living in an EEA state or Switzerland by 31 December 2020

If you are paid a pension or benefit by an EEA state or Switzerland, you should check with the organisation that pays you to find out what you will need to do to continue receiving any benefits or pension after 31 December 2020. You can find out more by checking the country specific guidance for UK nationals.

Moving to an EEA state or Switzerland from 1 January 2021

If you move to an EEA state or Switzerland from 1 January 2021 and you are not covered by the Withdrawal Agreement, your entitlement to a pension or benefits from that country will depend on the outcome of the UK’s negotiations with the EU.

Annuities and personal pensions from a UK pension provider

Pension providers should have made plans to make sure you can still get payments from your annuity or personal pension following the UK leaving the EU.

Pension providers will contact you if they need to make changes to annuities or pension or the way they are paid.

UK workplace pensions

Workplace pensions can be paid to people who live overseas and the Government does not expect this to change because the UK has left the EU.

If a workplace pension is paid into the UK bank account of someone living in the EEA or Switzerland, the bank should contact you if it needs to change the way the you receive the pension because the UK has left the EU.