By Harriet Meyer
State pensions are still payable to those retiring abroad, as long as you have paid the required National Insurance Contributions over the years.
However, under current legislation there are many countries where your state pension will not be increased in line with inflation as it is in the UK.
More than 550,000 UK pensioners live in countries without reciprocal treaty arrangements. These include Australia, South Africa, Canada, and New Zealand.
The House of Lords rejected an appeal from the High Court in May last year. Their four-to-one ruling came after a seven-year legal battle by Annette Carson, 62, who lives in South Africa. Campaigners have now taken their case to the European Court of Human Rights in Strasbourg.
According to the Department for Work and Pensions it would cost up to £400 million each year to give the annual increase to all British pensioners who decide to live abroad. The total cost of state pensions is around £40 billion.
If you retire in a country that is in the European Economic Area (EEA) or that has a reciprocal agreement with the UK your pension entitlement will increase with inflation, and you should check that your pension is being increased accordingly.
The Pension Service International Pension Centre (IPC) deals with queries about UK benefits payable to those living overseas. You can contact them on Int 44 191 218 7777.