Brits who plan to retire abroad will see changes to how state pensions are calculated under new government plans.

Under new rules, Brits living in Australia (before March 1 2001), Canada or New Zealand will no longer be able to count time they have spent abroad as a qualifying period for state pension.

The changes will come into effect from January 1, 2022 and will affect whether a person qualifies for state pension or not.

State pensions are one of many financial decisions you need to make if you are preparing to emigrate according to the personal finance experts at

James Andrews, senior personal finance editor at said the change is a timely reminder of plans UK citizens need to put in place if they are planning on living abroad, especially in retirement.

He said: “The recent changes to state pensions serve as a timely reminder that you have to put a comprehensive financial plan in place if you’re intending to retire abroad.

“For starters, the process of moving your money overseas can take quite some time, so it’s best to start as early as possible.

“In some countries for example, you can’t even set up a bank account without a residential address there, so it might be worth applying for a prepaid travel card or current account to act as a stop-gap while you sort out the Ts and Cs.

“The quickest and easiest way to get an overseas bank account set up is to speak to your existing bank to see if they have a presence abroad – it’ll make moving your money to your desired country much easier.”

He added: “The other issue that needs careful consideration is your credit history.

"When you emigrate, your credit history unfortunately doesn’t move with you – meaning you’ll be starting completely from scratch.

“In practice, this will likely mean a massive reduction in your borrowing potential, so you need to have a plan in place in case of unexpected bills. Since you might not be able to rely on a credit card or qualify for a loan, it’s a good idea to have some emergency funds in place to see you through any financial difficulties."