From April 2026, if you’re a UK expat, you’ll have to pay five times more to boost your State Pension entitlements.
In a Budget that failed to live up to the unprecedented hype preceding it, one of the changes announced was a new measure preventing British expats from topping up their UK State Pension contributions via Class 2 National Insurance contributions (NICs).
Here’s what you need to know.
How the UK voluntary pension payments work now
Under current rules, if you’re a UK expat living abroad, you can opt to pay voluntary NICs to top up missing years on your State Pension.
To qualify, you simply need to have lived in the UK for at least three years and worked – as an employee or self-employed – in the UK before leaving.
There are two routes to top up:
Class 3 voluntary National Insurance contributions
Costing £17.75 a week, or £923 to “buy back” a full year of State Pension entitlement, this option is available to anyone living outside the UK who previously worked in the UK as an employee or self-employed.
Class 2 voluntary National Insurance contributions
For many years, UK expats have been able to use Class 2 voluntary NICs to top up their State Pension entitlement. At just £3.45 a week, it costs a total of £182 to make up a full year of State Pension entitlement.
Under existing rules, a small number of contributions made during a short time frame could open the potential to access long-term, inflation-linked pension benefits – which could provide a substantial return on investment.
You’ve probably already guessed what’s coming…
From April 2026, the lucrative Class 2 NIC “loophole” will be removed
In the 2025 Autumn Budget, Rachel Reeves announced that she would end the ability of those living abroad to buy cheap access to a UK State Pension, by closing the voluntary NIC loophole.
After 5 April 2026, Class 2 voluntary NICs will no longer be available to people living abroad.
Meanwhile, eligibility to pay Class 3 voluntary NICs will be tightened. From the 2026/27 tax year, you’ll only qualify if you’ve lived in the UK or made NI contributions for at least 10 years.
Check your State Pension forecast to see how much you might expect to receive
From April 2026, the full new State Pension will increase by 4.8% to £241.30 a week, or about £12,548 annually.
You can check your current NI record on the government website to see a full summary of both paid and unpaid years and discover the level of payments you might receive from your State Pension.
This helps you clarify the cost of topping up your State Pension to increase the amount you receive once you reach State Pension Age – currently 66, set to increase to 67 by 2028 and 68 by 2046. Again, you can check your State Pension Age on the government’s website.
Your State Pension payments won’t necessarily be protected by the triple lock
Under the triple lock, the State Pension increases each year by the highest of three figures:
- Inflation, as measured by the Consumer Prices Index (CPI) in September (of the previous year)
- The average increase in wages across the UK
- 2.5%
For the 2026/27 tax year, this means pensioners can expect payments to increase by 4.8%. For those on the full new State Pension, this represents an increase of £575 a year.
However, as a Brit living abroad, you won’t necessarily benefit from triple lock inflation protection.
If you live in the EU, EEA, or Switzerland, your UK State Pension will increase in line with the rate paid in the UK.
If you move outside these countries, you can still claim your State Pension but the amount you receive will remain constant. Due to inflation, this means that the real value of your State Pension will decrease over time.
Should you return to the UK after you've started claiming your pension, your payments will increase to the current rate paid in the UK.
The clock is ticking but we’re here to help
Beyond removing access to Class 2 voluntary NICs for those living abroad, the government is also launching a wider review of voluntary NICs – with evidence expected to be published in 2026.
Topping up your State Pension with voluntary NICs is rarely a straightforward decision. You need to balance the cost of the contributions you’d make with the additional pension you’ll receive.
It’s also important to assess your State Pension alongside other retirement savings, including private pensions and any additional savings and investments you might have.
Get in touch
If you’d like to understand more how the UK State Pension might play into your long-term plans or anything else to do with planning your retirement income, please get in touch.
Email enquiries@alexanderpeter.com or call +44 1689 493455.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
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