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Retiring in Pakistan: UK expat's saving guide

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5 minutes

To spend your well-deserved retirement without a worry, securing a good pension in Pakistan is a must. The earlier you start thinking about it, the better. In this article, we’ll give you a short guide on retirement planning: you’ll understand the pension rules in Pakistan and learn tips on sending GBP to PKR.

Pension rules in Pakistan

For citizens of Pakistan

Age. Currently, retiring in Pakistan is possible once you reach the age of 60. Another option is to contribute for 25 years and then opt for the Voluntary Pension Scheme.

Minimum pension in Pakistan. Recently, the Government implemented several pension reforms in Pakistan, and you’ll love this one. Now, the minimum payments have increased from Rs. 10,000 to Rs. 11,500 per month.

How the pension is calculated. The way your pension in Pakistan is calculated depends on where you were working. For most citizens, this formula applies:

Retiring in Pakistan: UK expat's saving guide
Formula for pension in Pakistan

You don’t have to calculate it yourself. For a quick result, use official calculators like this one.

For British expats in Pakistan

Some people live and work in the UK, but then decide to join the community of British expats in Pakistan. In such cases, expats in Pakistan still have the right to receive a pension. You should be able to transfer and access your UK pension abroad after completing some paperwork and proving your eligibility. All the details are clearly explained on the official website of the UK government. Head here to explore.

Retiring in Pakistan: UK expat's saving guide
Retiring in Pakistan

What can you do in advance

Starting to take care of your pension in Pakistan in your 20s/30s/40s/… is an excellent idea. Check these tips on retirement abroad.

  1. Decide which country’s pension you want to receive. You have to know where to work, contribute, and seek citizenship.
  2. Explore pension schemes. State vs workplace vs personal schemes in the UK and civil vs contributory vs voluntary schemes in Pakistan.
  3. Understand the cost of living. Of course, we can’t guess how much the groceries will cost in 30 years — not in this economy — but you can take the current situation and approximately adjust it for the future.
  4. Compare it to your potential pension payments. See whether you have enough funds or not.
  5. Start saving in any case. Retiring in Pakistan or the UK is all about planning. ‘There is no tomorrow’ mentality shouldn’t affect the way you save and invest in your secure future.

Want long-term savings? Then, start to transfer money gradually between your GBP and PKR accounts. It’ll make it easier to contribute to your future pension in Pakistan and access money when needed. The app that will help you with it is Profee.

Sending money to Pakistan with Profee

To support your family, invest, buy property or prepare for retiring in Pakistan, you’ll need a service that seamlessly fits into your daily routine and helps transfer money in minutes. Profee meets these needs:

  • Send, not lose. With unmatched exchange rates and little to no fees, you’ll get the most out of each pound.
  • Warm welcome offer. Currently, your first transfer will be fee-free and at a special rate. A perfect start for pension transfers.
  • Stay comfy. You can send money from home, office and even a taxi on your way to an airport.
  • Keep it safe. Profee has an official licence, holds the PCI DSS Level 1 certification and safeguards your data and funds from start to finish.

Join Profee and start securing a happy and safe retirement.

Saving tips

Here we will focus on some general tips for savings. For more specific advice, read these articles:

Live below your means

Forget about credit cards and Buy Now, Pay Later services. Of course, there are some urgent situations, but another iPhone is out of this category. Start being more strict with your spending.

Say bye to one costly habit

Only one! For example, some have a ritual of grabbing a cup of coffee on their way to work. It’s fancy and tasty but very expensive. We believe that you can brew an even better coffee at home and fill it with love and care.

Take advantage of cashbacks and reward systems

Don’t be lazy and join the loyalty programme of every shop and cafe you visit. Don’t underestimate the power of tiny cashbacks and discounts — in the long term, they can save you hundreds of pounds.

Retiring in Pakistan: UK expat's saving guide
Pension in Pakistan

FAQ — Pensions for expats in Pakistan

What are the recent pension reforms in Pakistan?

There was a shift to the Contributory Scheme, revisions to pension calculations, a prohibition on receiving multiple pensions, the end of pension compounding, and some other changes.

Can a UK citizen live in Pakistan?

Yes. However, British expats in Pakistan have to hold a visa to stay legally in the country.

Can I retire abroad from the UK?

Yes, as long as you meet all the visa requirements and are financially prepared for retiring in Pakistan.

Will I lose my UK pension if I live abroad?

Not necessary. You can continue receiving your pension even in another country.

What is the 70% rule for retirement planning?

This rule helps with setting clear saving goals. It states that each month you’ll need around 70% of your pre-retirement, post-tax income to live comfortably.

Trademarks, logos and other graphic or text elements are owned by the respective right holders. We do not promote third-party brands but provide introductory information only. All the facts mentioned in the article are valid on Oct 09, 2025 – discover the current Profee terms we are offering you right now here.