Editor’s Note:
This article is a personal contribution from a reader raising awareness about the UK “frozen pension” policy and seeking support from other British expats. The views expressed are those of the author. The issue discussed remains relevant as of 2026, as UK State Pensions are still not indexed for retirees living in Indonesia. Readers should note that some statistics and references reflect the time in which the article was originally written and may require verification.
Are you a British expat that is receiving the UK state pension?(or will be in the future!)
You will be well aware that the UK state pension you get was frozen when you moved to Indonesia to make your permanent home (i.e. no longer resident in the UK). Meaning that your state pension is now as it was when you made that permanent move. The annual increases in the pension are not passed on to you as they are to UK resident pensioners.
This situation remains the case today. As of 2026, UK State Pensions are still not increased annually for pensioners living in Indonesia, as the country does not have a reciprocal agreement with the UK that includes pension uprating.
The increases are also made to pensioners who live in an EU country and some other countries. Following changes such as Brexit, pension uprating continues in many European countries under existing arrangements, as well as in countries like the USA.
I am sure that you will agree this is not fair. Just because you live in another country, why should you be discriminated against? No doubt you paid your National Insurance contributions for all of your working life in the UK, possibly for 40 years or so. The government policy says equality for all. Where is the equality for pensioners that are on frozen pensions? Where is the increase to cover the cost of living increases? I think you will have noticed that the cost of living here has gone up as well as in the UK!
The International Consortium of British Pensioners (ICBP) has been fighting to get this situation corrected so that all pensioners are treated equally. They went to the EU courts but lost their case and many comments have been made on the way the government replied to their case. These legal challenges took place in the late 2000s, and despite continued lobbying by advocacy groups, there has been no change in UK government policy as of 2026. The ICBP continues its efforts, with branches in countries such as Australia and Canada also active in this fight.
It has been suggested that I might be able to assist by finding out how many U.K. state pensioners are living in Indonesia. I hope that every British expat state pensioner (or those getting close to pension age) affected by the frozen pension situation will send me an email with a little (non-personal) information (a user name, email address, location in Indonesia, approximate date you started to receive the UK pension and the date you became “frozen”), that I can compile and pass on to the ICBP. Every little bit of “ammo” will be useful to the cause. It won’t take too much of your time so please help.
Let’s take action to rectify this!Please email this information to [email protected]
I would ask you to “chat amongst yourselves” about this subject and I suggest you take a look at the following websites (there are many others!).
It is quoted that pensioners in the UK cost the government £8,000 a year. Frozen pensioners living abroad cost £1,000 a year: frozen pensioners save the government £2.5bn a year. These figures reflect estimates circulating at the time the article was originally written and should be treated as historical reference points rather than current data. The government says it can’t afford to pay the increase, yet they are lowering the number of years required for full pension from 40 to 30 years contribution.
There are many people that have written on this subject and I would ask you to spare a couple of hours researching this subject and hopefully join the battle for equal rights on pensions.
Quotes from The International Consortium of British Pensioners:
“There are between 11 and 12 Million UK Basic State Pensioners. 96% of them have their pensions indexed every year, whether they live in the UK, Europe, the USA or a few other favoured countries. The National Insurance Fund is currently in balance to the tune of over 41 Billion Pounds Sterling, as of 30 September 2010.”
“4% of UK State Pensioners have their pensions FROZEN, because they have retired in countries where their pensions are NOT indexed. At the hearing in the European Court of Human Rights in 2009 even the lawyers representing Britain agreed that the cost of rectifying this anomaly would be less than 1% of the annual National Insurance income.”
These quotes reflect the situation and arguments presented during legal challenges in the late 2000s and are included here for context.
So, please spare a bit of time to get involved and drop me an email.
Balifrozenguy
Frequently Asked Questions
Is the UK State Pension still frozen in Indonesia?
Yes. As of 2026, UK State Pensions remain frozen for retirees living in Indonesia.
Why are pensions frozen in some countries?
The UK only increases pensions in countries with reciprocal agreements that include pension uprating.
Can this policy change?
It is possible, but despite years of campaigning, no changes have been implemented so far.
Does this affect all British expats in Indonesia?
Yes, unless they return to the UK or move to a country where uprating applies.
