Your pension will remain unchanged when you become a resident in Spain. Also any bereavement allowance or widowed parents' allowance will still be paid for a year.
Pensions can be paid into a Spanish bank account. Any increases in state pensions will also be received.
Do check that the bank does not charge for accepting
payments from the UK Department for Work and Pensions as some do. Gibraltar is an option for pension payments.
Having both a sterling and a euro account, means
that you can transfer funds from one to the other depending on the exchange rate.
If you have contributed to the Spanish Social Security scheme for a minimum of
15 years, you will receive a Spanish state pension. National Insurance payments in other countries are taken into consideration. The pension will be paid independently
of any UK state pension you are entitled to.
Any Spanish private pension will be paid out in the same way as a state pension. However, in the UK tax is paid before
pension payments are received, in Spain the pension is paid net.
Pensioners will not be entitled to Living Allowance, Winter Fuel Payment, Income Support,
Attendance Allowance and Carer's Allowance. However, pensioners can receive special reduced rates for call charges, flights, entry to cultural centres and
travel (RENFE offer a Gold Card with up to 40 per cent discount).