The boost changes the annual cash breakdown as follows: The New State Pension (for those reaching pension age after April 2016) has risen to £241.30 a week, delivering an extra £575 per year. The Basic State Pension (for those who retired before April 2016) has climbed to £184.90 a week, which adds roughly £440 annually.

But there is a catch. While current pension payments are higher, the UK government introduced major structural changes on 6 April 2026 affecting expats who want to buy voluntary National Insurance (NI) years to boost their future payout.

Class 2 Abolition: The cheap Class 2 voluntary contributions (which cost roughly £182 a year) have been abolished for overseas residents. Five-Fold Cost Spike: Expats looking to plug contribution gaps must now use Class 3 rates, which cost nearly £957 per tax year.

Stricter Eligibility: To qualify for any voluntary top-ups from abroad, individuals must now prove they have a minimum of 10 years of UK residency or contribution history, up from the previous 3-year requirement.

But, because your pension is paid in sterling but life in Spain is spent in euros, your actual monthly purchasing power will fluctuate depending on the current GBP/EUR exchange rate. Additionally, remember that if you are a tax resident in Spain, your UK State Pension is considered taxable income and must be declared on your Spanish IRPF tax return.