What Happens to My Private Pension If I Move to France?

If you are planning to move to France, particularly if retirement is part of the plan, you may be wondering what will happen to the private pension you have built up during your working life in the UK.

Perhaps you have a workplace pension, a personal pension or several different pension pots from previous jobs. Will you still be able to access them in France? Can the money be paid into a French bank account? And will you pay tax in the UK or France?

The good news is that moving to France does not usually mean losing your UK private pension. You can generally keep your existing pension and receive payments while living abroad. However, there are some important things to understand before making the move.

Can I Keep My UK Private Pension If I Move to France?

Yes. In most cases, you can leave your private pension with your existing UK pension provider when you move to France.

You do not normally have to transfer your pension to a French scheme simply because you are changing your country of residence. Your pension can remain invested in the UK, and when you become eligible to access it, you can usually arrange for payments to be made while you live in France.

Your options will depend on the type of pension you have and the rules of your particular scheme. Some providers may have restrictions on paying overseas residents or may require additional paperwork, so it is worth contacting them before you move.

If you have several pensions from different employers, this is also a good opportunity to review what you have, check the charges and understand the benefits attached to each one.

Can My Pension Be Paid into a French Bank Account?

In many cases, yes. Your pension provider may be able to pay your pension directly into a French bank account, although you should confirm its arrangements before relying on this.

You may also be able to continue receiving payments into your UK bank account and transfer the money to France when needed.

If your pension is paid in pounds sterling but your everyday expenses are in euros, exchange rates can make a difference to how much you have available to spend. For example, a change in the pound-to-euro exchange rate could affect the amount you receive when converting your monthly pension.

It is worth considering transfer fees, exchange rates and the convenience of your chosen arrangement, particularly if your pension will be your main source of income.

Will I Pay Tax on My UK Private Pension in France?

This is one of the most important questions to investigate before moving.

Your tax position depends on the type of pension you receive, where you are considered tax resident and the terms of the UK-France double taxation agreement.

Under Article 18 of the current UK-France tax treaty, pensions paid in consideration of past employment to a resident of one country are generally taxable only in that country, subject to specific exceptions. In practical terms, an ordinary UK private pension paid to someone who is tax resident in France will generally be taxable in France rather than the UK.

However, government service pensions can be treated differently, and certain pension payments or lump sums may need separate consideration.

You should not assume that the tax treatment is identical for every pension. It is sensible to obtain advice based on your own arrangements before taking significant withdrawals.

You can read the official UK-France double taxation agreement and the UK government's guidance on tax when you get a pension abroad.

What If I Want to Take a Tax-Free Lump Sum?

Under UK pension rules, eligible people can generally take up to 25% of certain pension benefits as a tax-free lump sum, subject to the applicable allowances and conditions.

However, tax-free under UK rules does not automatically mean tax-free in France.

If you plan to take a lump sum before or after moving, do not assume it will receive the same treatment in both countries. The tax treatment can depend on the nature of the payment, your circumstances and the relevant treaty provisions.

The timing of a withdrawal may also affect your overall financial position. Taking a large amount in one tax year can have different consequences from drawing your pension gradually.

Before making a decision, speak to a suitably qualified adviser who understands both UK pension rules and French taxation.

Should I Transfer My Pension to France?

For most people, moving to France does not mean they need to transfer their UK pension.

Transferring a pension overseas is a separate financial decision and should not be undertaken simply because you are moving country. You will need to consider investment options, charges, currency exposure, tax treatment, access to your money and any valuable benefits you might lose by transferring.

Some overseas pension schemes qualify for specific UK tax treatment, but not every scheme does. Transferring can also introduce additional costs and risks.

In many cases, keeping your pension in the UK and arranging to receive payments while living in France may be a perfectly practical option.

What Should I Do Before Moving to France?

Before you relocate, make a list of your pensions and contact each provider to confirm its arrangements for customers living overseas. Check when you can access your money, how payments can be made and whether your contact details or paperwork need updating.

You should also consider your other retirement income, including your UK State Pension, savings, investments and any rental income. Looking at everything together will help you build a realistic budget for your new life in France.

Finally, make sure you understand your tax residence position and how your different sources of income will be treated once you move.

Planning Your Retirement in France

Your private pension can be an important part of funding your new life in France, and moving abroad does not usually mean giving it up. The key is to understand how your pension works, how you will access it and what tax rules apply to you.

At A New Life in France, we help people understand the practical considerations involved in moving to and living in France, from visas and residency to property, healthcare and retirement planning.

Explore our guides at A New Life in France and take the time to plan your move with confidence.