State pensions in Spain work very similarly to those in the UK and similarly they are often considered inadequate. You cannot continue paying into your UK personal pension plan if you are no longer a UK tax payer.

If you are a Spanish tax payer you can take out a policy in Spain for which you can claim tax relief on your premiums. This is basically just a savings plan which will provide a lump sum on retirement.

A more popular idea amongst the expatriate community is to contribute into an offshore pension plan. Offshore plans are far more flexible than the plans available in the UK. They can be set up on a joint life basis for husband and wife, and critical illness and life cover can be included.