If you’re moving to a Baltic nation, ensuring you follow the right processes regarding your UK pension entitlement is something that needs thinking about before you leave the UK. Your first point of contact when making arrangements for your pension payments will be the UK Pension Service.

The International Pension unit of the service is very helpful and can provide all of the advice you need for your particular circumstances. If you have been paying into the state pension in the UK, you will receive a pension claim form from the Pension Service four months before you retire. It is very important to tell them your new address in the Baltics before you move or you may not receive important documents and information. If you are already abroad, contact the International Pension Centre in Newcastle-upon-Tyne to update your personal details.

When you are eligible for your pension, you may opt to have it paid directly into your bank account in Estonia (currency - Euro), Lativa (currency – Lats), or Lithuania (currency - Litas), or continue to have it paid into your UK bank account, leaving it there for future visits back to the UK or transferring it at your own will.

Remember that transferring money from the UK to an account in Estonia, Latvia or Lithuania will expose it to exchange rate fluctuations. To minimise your exposure to exchange rate fluctuations, it would be worthwhile contacting a currency exchange specialist, such as Smart Currency Exchange, as they have a range of contracts that could save you money - compared to using a bank - and help you budget for regular payments.

If you have a personal or company pension scheme, moving to the Baltics shouldn't have any effect because your pension should continue to be paid in full and you are normally entitled to any rises regardless of the country you retire to. However, check the details of your pension scheme carefully before you move. Ask whether your scheme will pay into a bank account in your new country, as some company schemes will only pay into a UK bank.

Check too if your annuity company will transfer money to the Baltics free of charge (some companies will charge you for each overseas payment). Again Smart Currency Exchange could assist with this.

It is also advisable to speak to a tax specialist and find out where your pension might be taxable and whether a double tax treaty exists between your new country and the UK. Another point to verify is whether your pension will be index-linked to inflation.