Will your foreign state pension keep rising while you live in Spain?

Key rules

• UK pension: Your UK State Pension keeps rising while you live in Spain.
• Paying country: The paying country decides whether your pension is increased, not Spain.
• Australian Age Pension: The rate is frozen after long-term absence, so ask Services Australia how the agreement with Spain affects you.
• US and Canada: US Social Security and Canadian pensions are increased abroad, though Old Age Security has residency conditions.

The short answer

Living in Spain does not stop most pensions rising, but it depends on the country that pays you. UK pensions are uprated for people living in Spain. Other countries vary, so check the one that pays you.

UK State Pension

Your UK State Pension keeps rising while you live in Spain. This applies because Spain is in the EEA and has reciprocal arrangements with the UK. It also applies if you were living in Spain by the end of 2020. The yearly increase follows the triple lock, and the UK government sets the figure each year.

Germany, the Netherlands and France

• Germany: pensions are adjusted each July. The adjustment applies to you in Spain just as it does at home.
• Netherlands: the Dutch state pension (AOW) is tied to the minimum wage and paid at the same rate in Spain. It can be lower if you have not built up a full entitlement.
• France: pensions are revalued every year, usually in January. You get the same rate in Spain.

Each country sets its rates every year.

United States and Canada

• US: Social Security applies its yearly cost-of-living increase to benefits paid in Spain.
• Canada: Old Age Security and the Canada Pension Plan are both increased for people living abroad. Old Age Security has residency conditions, so check yours with the Canadian pension office.

Australia

The Australian Age Pension is the main exception. Its rate is frozen once you have been abroad for more than 26 weeks, with exceptions for countries that have a social security agreement with Australia. Spain has one. How it affects your rate depends on its terms, so ask Services Australia before you move.

Any other country

If your pension comes from another country, ask the office that pays it whether the yearly increase applies to people living in Spain. Do this before you move, and ask for the answer in writing.

The timeline and the questions below cover the Australian and other cases in more detail.

Timeline and deadlines

• Australian Age Pension rate is frozen if you live abroad long-term: after 26 weeks of absence from Australia

• Ask Services Australia how the agreement with Spain affects your rate: before you move

Frequently asked questions

Does an Australian Age Pension stop rising if I live in Spain?

The Australian Age Pension is normally frozen after 26 weeks of absence, but Spain has a social security agreement with Australia, which can change that. Terms of the agreement decide how your rate is treated, so confirm with Services Australia before you move.

Do Canadian pensions keep rising for people living in Spain?

Yes, Canadian Old Age Security and the Canada Pension Plan are indexed for recipients abroad, but Old Age Security has residency conditions. Check your own residency record with the Canadian pension service to see what you qualify for.

Are German, Dutch and French pensions paid at the same rate in Spain?

Yes, they are paid at the same rate as at home, with one possible exception for Dutch AOW. German pensions are adjusted each July, French ones usually in January, and AOW can be reduced if your accrual is incomplete.

Does a US Social Security pension get the yearly cost-of-living increase in Spain?

Yes, US Social Security applies its annual cost-of-living adjustment to benefits paid abroad, including in Spain. You do not need to apply for the increase.