5 million UK expats face state pension squeeze from next month
More than five million British expats could be caught in the tightening of new UK State Pension rules from next months, with hundreds of thousands facing higher costs or losing access altogether.
This is the stark warning from the CEO of deVere Group, one of the world’s largest independent financial advisory organisations, as sweeping reforms set to take effect in April 2026 begin to reshape how expats can build and protect their UK retirement benefits.
Nigel Green comments: “A significant number of British expats are at risk of being shut out of cost-effective ways to secure their State Pension.
“The changes are structural, and the consequences for those who delay could be permanent.”
The reforms will remove access to Class 2 voluntary National Insurance contributions for individuals living overseas, which is, historically, the most affordable route for expats to maintain their contribution record.
In its place, Class 3 contributions will become the primary option, carrying a much higher annual cost.
For those with gaps in their National Insurance history, the difference is material.
Over time, switching from Class 2 to Class 3 can add thousands of pounds to the cost of securing a full or partial State Pension, fundamentally altering long-term retirement planning calculations.
“The cost dynamics are changing sharply. What was once a relatively low-cost strategy to build entitlement is becoming significantly more expensive. This changes the equation entirely for many,” explains the deVere CEO.
Alongside the cost increase, a new eligibility threshold will require individuals to have at least 10 years of UK contributions or residency in order to make voluntary payments.
This introduces a stricter barrier that could prevent some expats from topping up their record at all.
Internationally mobile professionals, those who left the UK early in their careers, and long-term expats are particularly exposed.
Many assume they can address shortfalls later, yet the new framework risks removing that flexibility.
Nigel Green explains: “Eligibility is tightening at the same time as costs are rising. Anyone who has worked in the UK needs to assess their position now, because the options available today will not necessarily exist after April 2026.”
The UK State Pension currently requires 35 qualifying years for a full entitlement, with a minimum of 10 years needed to receive any pension at all.
Missing years directly reduce the final payout, making it critical for individuals to understand where they stand.
Despite the scale of the changes, awareness remains limited. Many expats are unaware they may still qualify for Class 2 contributions under the current rules, or that their ability to make voluntary payments could be restricted entirely once the reforms come into force.
Nigel Green continues: “There’s a clear gap between what people assume and what the rules actually allow.
“Without reviewing their National Insurance record, individuals are making decisions in the dark.”
Reviewing contribution histories, identifying gaps, and understanding eligibility under the current system are now time-sensitive steps.
Acting before the deadline could preserve access to lower-cost contributions and ensure that entitlement is not compromised.
If you have ever worked in the UK, paid into the UK system, or are unsure whether you will qualify for a full or partial State Pension, a free webinar on 31 March will provide the clarity you need. Click here to register.
Nigel Green concludes: “There’s a closing window to act under the existing framework.
“Expats who take stock now can still make informed decisions.
“Those who wait risk higher costs, reduced flexibility, and in some cases, losing access altogether.”