UK State Pension in Thailand: Will It Cover Care Home Fees?

One of the first questions British families ask about Thailand is what happens to the State Pension. The short answer is that it can be paid there, but it stops rising. This guide explains what that means, how payments and tax work, and how to plan a care budget around it.

The short answer

You can receive the UK State Pension in Thailand. It is frozen at the rate you receive when you move, or when you first claim it abroad, and does not get the annual increases paid in the UK. If you move back to the UK, it is paid at the current rate again.

The 2026/27 rates

Will it cover care in Thailand?

On its own, usually not. Care fees in Thailand vary widely with the type of care, the location and the provider, so the only reliable comparison is between the pension and written quotes for the person’s own situation. Most families combine the State Pension with private or workplace pensions, savings, or money released from a property. Our budget planning guide lists the costs to include.

Building a realistic budget

• Medical costs and insurance: doctor visits, medicines and hospital stays are usually charged separately from care fees, and health insurance premiums rise with age.
• Exchange rates: the pension is in pounds and most costs in Thailand are in baht, so the pension buys more or less as the rate moves. Build in headroom rather than budgeting to the last pound.
• The freeze over time: because the pension does not rise, its real value falls as prices go up. Review the budget regularly.
• Changing needs: care needs tend to increase. Check what a budget that works today would look like with more care.
• One-off costs: the move, visas, deposits, equipment and flights for family visits.

A useful way to think about it: the frozen State Pension is a predictable base, and rising costs need to be planned around more flexible sources.

Tax: the main points

• UK tax. GOV.UK says non-residents do not usually pay UK tax on the State Pension. Other UK income, such as a private pension or rent, is usually still taxable in the UK. British citizens living abroad can usually claim the UK Personal Allowance. UK tax residence is decided by the Statutory Residence Test, and the year you leave can be complicated.
• Thai tax. Someone who spends 180 days or more in Thailand in a calendar year is a Thai tax resident. Since 1 January 2024, Thai tax residents are taxed on foreign income in the year they bring it into Thailand, whenever it was earned, except income that arose before 2024. Changes to this rule have been proposed, so check the current position with the Thai Revenue Department or an adviser.
• The tax treaty. The 1981 UK–Thailand treaty treats different pensions differently. UK government-service pensions are generally taxable only in the UK, while other pensions may be taxable in both countries with relief for tax already paid. How it applies to you depends on your circumstances.
• Voluntary National Insurance. From 6 April 2026, voluntary Class 2 contributions for periods abroad are closed apart from limited exceptions, and new Class 3 contributions from abroad need at least 10 years of UK residence or contributions. Check your record with HMRC.

Tax is personal. Take advice from HMRC and a qualified cross-border tax adviser before you move, and keep clear records of what you transfer to Thailand and when.

How the pension is paid

• Into a Thai bank account: usually converted into baht at the exchange rate on the day. GOV.UK lists a conversion charge of 0.39%.
• Into a UK bank account: you then transfer money to Thailand yourself, choosing the timing and the provider.

Payments can be made every 4 or 13 weeks. Tell the International Pension Centre (+44 191 218 7777) about the move and the account you want to use before you go, and keep at least one UK account open for UK tax and correspondence.

Other income to consider

• Private and workplace pensions: these can usually be paid abroad and are not affected by the State Pension freeze. Check each scheme’s rules.
• Tax-free pension lump sums: UK rules usually allow up to 25% of a private pension to be taken tax-free, subject to an overall limit. How Thailand treats a lump sum brought into the country is a separate question for an adviser.
• A UK property: selling or letting it can fund a move, with tax consequences to check in both countries.
• Attendance Allowance: it can continue only during a temporary absence of up to 13 weeks (26 weeks for medical treatment). A permanent move ends it.

The bottom line

Frequently Asked Questions