UK tightens pension rules for expats – What you need to know

The UK government has announced significant changes to state pension rules for people living abroad, and these will come into effect from April 2026.

What’s changing?

• Cost Increase:
  Currently, expats can pay £182 per year for 35 years to qualify for a full UK state pension. From April 2026, this rises to £910 per year.

• Residency Requirement:
  You will now need to have lived in the UK for at least 10 years to qualify for a full pension. Previously, three years was enough.

• Contribution Class:
  Payments will move from Class 2 to Class 3 contributions, which are more expensive.

Why the change?

The UK government says the aim is to ensure people have a “sufficient link” to the country and “pay a fairer price” for their pension entitlement.

What does this mean for Jersey residents?

Our Chairman, Carl Walker said the following about this change:

"If you’ve worked in the UK, you’ve already contributed to the state pension. Under the old rules, you could top up cheaply and claim a full UK pension alongside your Jersey pension. It was a very generous system.

“Frankly, it was unsurprising this loophole closed. Paying £182 a year to receive £230 a week meant you’d recoup your costs within six months of retirement. It was a great deal for expats, but it wasn’t sustainable.

"While this change may feel like a blow for those planning to retire abroad, it’s important to review your pension strategy now. If you’re considering topping up your UK pension, you have until April 2026 to do so under the current, cheaper rules."

If you do want to try and claim for your UK pension here is our step-by-step guide:

Step-by-step guide for expats buying back UK National Insurance contributions - Jersey Consumer Council