British pensioners hoping to enjoy retirement overseas can still receive their state pension, but thousands end up losing money in countries where their pensions are “frozen”.

Pensioners in the UK benefit from a “triple lock”, with their state pension increasing each year based on the highest of wage growth, inflation or 2.5%.

Britons can continue to receive their state pension if they relocate to a country in the EU, EEA or Switzerland, where pension payments will increase annually in line with UK payment rates.

However, for others who retire outside these areas, their state pension payments can be permanently frozen on the date of retirement – Nearly half a million Britons live overseas are affected by this policy.

Countries where UK pensioners have UK pensions Reciprocal social security agreement covering upgrades Their pensions did increase with the triple lockdown, but the list excludes Australia, Canada and many other countries.

European Economic Area (EEA) countries where Britons receive increasing state pensions year by year

• Austria
• Belgium
• Bulgaria
• Croatia
• Cyprus
• Czech Republic
• Denmark
• Estonia
• Finland
• France
• Germany
• Greece
• Hungary
• Iceland
• Ireland
• Italy
• Latvia
• Liechtenstein
• Lithuania
• Luxembourg
• malta
• Dutch
• Norway
• Poland
• Portugal
• Romania
• Slovakia
• slovenia
• Spain
• Sweden

Although Switzerland is not in the European Economic Area, pensioners can also receive state pension increases in Switzerland.

I British pensioners affected by the policy have previously been reported, including an Australian couple who receive a state pension of around £500 a month.

As of March 2022, there were around 480,000 people receiving the UK state pension in countries that had not increased the pension – 84% of whom lived in Australia, Canada and New Zealand. According to the Department for Work and Pensions (DWP).

Campaigners in Australia and Canada have called for pension increases under the triple lock but say the UK lacks the political will to tackle the issue.

The DWP said the estimated cost Increase state pensions for overseas residents If they had never been frozen, the figure would have been £940 in the 2024-25 financial year and £930m in the following financial year.

Countries with which the UK has a social security agreement

• Barbados
• Bermuda
• Bosnia and Herzegovina
• Gibraltar
• guernsey
• Isle of Man
• Israel
• jamaica
• jersey
• Kosovo
• Mauritius
• Montenegro
• North Macedonia
• the Philippines
• Serbia
• turkey
• USA

The DWP said raising the state pension in frozen countries could cost £4.59bn from 2023 to 2028.

A spokesman for the DWP previously said I: “Our priority is ensuring every pensioner gets the financial support they deserve.

“We understand that people move abroad for a variety of reasons and we provide clear information on how this affects their finances.

“The government’s policy of increasing UK state pensions for beneficiaries living overseas has been a long-standing policy for more than 70 years and we will continue our policy of increasing overseas state pensions where required by law.”