Generally, yes. Under UK pensions law in 2026/27, a UK final salary (defined benefit) pension increases in line with the scheme's rules and statutory minimums wherever you live, so moving to Dubai, Spain or Australia does not by itself freeze it. This is different from the UK State Pension, which only receives yearly increases in certain countries.

Why moving abroad does not usually affect it

Your final salary pension is a promise from your former employer's scheme, based on your salary and service. The scheme rules, backed by UK pensions law, set how it grows before and after you retire. Neither generally depends on where you live.

There are two stages to think about.

Before you retire (deferred). If you have left the employer, your pension is held as a deferred benefit and usually revalued each year until it starts. How much depends on the scheme rules and statutory minimums, which link revaluation to inflation, subject to caps.

After you retire (in payment). Many schemes increase pensions in payment each year. UK law sets minimum increases for service from 6 April 1997, linked to inflation and capped. For service from 6 April 2005, the statutory cap is 2.5% a year. For service between 6 April 1997 and 5 April 2005, it is 5%. Service before 6 April 1997 may have little or no statutory increase beyond any guaranteed minimum pension rules, although some schemes pay more than the minimum. Your scheme booklet or annual statement will show what applies to you.

These rules do not change because you are non-resident. As long as the scheme has your current address and bank details, it will normally keep applying its usual revaluation and increases. Options such as taking a lump sum at retirement, or retiring early on reduced terms, are often available to members abroad too. Your scheme can confirm what applies.

The State Pension is different

The UK State Pension can be paid worldwide, but yearly increases are generally only paid if you live in the European Economic Area, Switzerland, or a country with an agreement that provides for them. Spain and Portugal are included. The UAE and Australia are not, so a State Pension paid there generally stays at the rate when you left or first claimed.

The full new State Pension rate for 2026/27 is £241.30 a week. Your own amount may be lower or higher depending on your National Insurance record and starting amount.

People sometimes assume the same freeze applies to a workplace final salary pension. It does not.

What can affect the value you receive

Although increases continue, a few things can change what you actually get:

  • Currency. Most UK schemes pay in sterling. If you spend dirhams, euros or Australian dollars, exchange rate movements change your spending power. See our guide to drawing a UK pension abroad.
  • Tax. Where you are taxed depends on residence and any double tax treaty. Under Article 17 of the UK and UAE treaty, pensions paid to a UAE resident are generally taxable only in the UAE, which does not currently tax individuals' income. Other countries may tax it locally.
  • Inflation where you live. Scheme increases follow UK inflation measures, not the cost of living in your country.

A worked example

Illustrative example only, not a real client.

David moves to Dubai at 66 with a final salary pension of £20,000 a year and a State Pension of £10,000 a year. Assume his scheme pension comes from service between 1997 and 2005, so it rises with inflation capped at 5%, and that UK inflation is 3% the following year.

  • His scheme pension rises to £20,600 (£20,000 x 1.03).
  • His State Pension stays at £10,000, because the UAE is not a country where yearly increases are paid.

If inflation averaged 3% a year for 20 years, the scheme pension would reach about £36,122, while the State Pension would remain £10,000. This is a nominal illustration, not a forecast: inflation, exchange rates and scheme increases may differ, and the State Pension would be uprated if David moved to a country where increases apply.

Should this affect a transfer decision?

The guaranteed, increasing income from a final salary scheme is one of the main things you give up if you transfer out. The FCA's view is that most people would be best advised not to transfer. Our guide to defined benefit pension transfers for expats explains what a transfer would involve.

Common mistakes

  • Assuming a final salary pension is frozen abroad like the State Pension.
  • Not checking which parts of the pension have which level of increase.
  • Ignoring currency when comparing a sterling income with local costs.

A regulated financial adviser can help. Get in touch for a free introduction.

Sources and further reading

Last reviewed: October 2026. Tax year: 2026/27 (UK); current UAE rules. Jurisdictions covered: UK, UAE. Rates, legislation and guidance change, so recheck before relying on this. Rules can differ between England and Wales, Scotland and Northern Ireland; tax residence is fact-specific; treaty outcomes depend on residence, domicile or nationality provisions; examples are simplified and omit reliefs, costs, exchange rates and anti-avoidance rules. This is general information, not financial, tax or legal advice. Take advice in the relevant country before acting.