The pension is indexed linked for inflation on certain conditions. If you live in the UK or one of a select number of countries with whom a bilateral social security agreement exists with the UK.

The UK has a social Security Agreement within the EU.

This will continue during any Tranistion Period.

The proposed Withdrawal Treaty contains provision to allow the UK EU social security agreement to continue.

Continued Indexation of State Pension is subject to a UK EU  bilateral social insurance agreement being agreed long term. 

EU for this purpose includes the EEA countries ( all EU 28 plus Iceland, Norway, Liechtenstein), and Gibraltar and Switzerland.

Other countries with a bilateral social security agreement  include the British Isles, the former Yugoslavia states generally, some Caribbean islands, Israel, USA, Turkey and the Philippines. 

This situation may change post EU Brexit as more Bilateral  Social Security Agreements are made.

Contact us, ProACT EU Brexit for Expats Experts, for a free review and guidance.