7 Million Adults Unaware of State Pension Entitlement: HMRC Survey Reveals Planning Gap

Almost 7 million UK adults have never checked their State Pension forecast, according to research published by HM Revenue and Customs^[1] on 14 September 2026. The findings, released to coincide with Pension Awareness Week (15-18 September), reveal that one in eight adults (12.5%) have no visibility of their projected retirement income from the state system.

The research highlights a particular gap among 45-54 year-olds, who are more likely than any other age group to have never checked their State Pension forecast^[1] - a finding HMRC describes as concerning given this represents a critical window for retirement planning and potential remedial action.

Why Adults Avoid Checking Their Forecast

HMRC's survey into customers' online habits and attitudes towards pensions identified several barriers. The most common reason for not checking was that retirement feels too far away to think about, cited by 26% of respondents^[1]. Other factors included worries about losing track of pension pots from previous jobs (24%) and concerns about how career breaks might affect entitlement (20%)^[1].

A smaller but significant proportion said they simply did not know how to check their State Pension (9.5%) or believed the process would be too complicated^[1]. The findings suggest both behavioural and practical obstacles to engagement with what HMRC characterises as a straightforward digital service.

Myrtle Lloyd, HMRC's Chief Customer Officer, said: "It's never too early, or too late, to check your State Pension forecast. Checking your forecast on the HMRC app takes just a few minutes but can make a real difference to how prepared you feel for the future."^[1]

Digital Take-Up and the HMRC App

The survey found that almost a third of people have checked their State Pension using the HMRC app or online^[1], giving them what the department describes as a clear picture of what to expect in retirement. HMRC is using Pension Awareness Week to promote both the HMRC app and its Tax Confident website as tools for retirement preparation.

The HMRC app allows users to check their State Pension forecast and top up National Insurance contributions^[1], addressing two of the most common planning actions available to individuals who discover gaps in their record.

Implications for Business Owners and Directors

The 7 million figure represents a cross-section of the UK adult population, but the planning challenges may be particularly acute for self-employed individuals, company directors, and sole traders. These groups often face more complex National Insurance histories than employees in continuous PAYE employment, with periods of lower or voluntary contributions, gaps during business formation, or transitions between employment and self-employment.

The 45-54 age cohort identified by HMRC as least likely to have checked their forecast includes many directors of long-established businesses who may have prioritised business cash flow over personal pension planning during earlier trading years. Career breaks - cited by 20% of survey respondents as a concern^[1] - can include periods of business restructuring, company wind-downs, or transitions between director roles that create discontinuities in National Insurance records.

Worries about losing track of pension pots from previous jobs, mentioned by 24% of respondents^[1], may similarly affect directors who have moved between employed and self-employed status, or who have closed companies and started new ventures, accumulating small workplace pension pots across multiple entities.

National Insurance and Self-Employment

For sole traders and company directors, National Insurance contributions work differently than for employees. Directors can choose when to pay themselves and in what form (salary versus dividends), which affects both the timing and amount of National Insurance paid. Sole traders pay Class 2 and Class 4 contributions based on profits, with thresholds that mean low earners may not build up full State Pension entitlement automatically.

The HMRC app's ability to show forecasts and highlight top-up opportunities may therefore be particularly valuable for business owners who have had variable income patterns or who have prioritised business investment over personal drawings in earlier years. The 9.5% of adults who told HMRC they did not know how to check their State Pension^[1] may include business owners who assume their accountant or tax adviser is monitoring this on their behalf, when in practice many advisers focus on annual tax compliance rather than long-term pension forecasting.

Forward Planning and the State Pension Age

HMRC's message during Pension Awareness Week is that checking a forecast can prompt action while there is still time to address gaps. Lloyd's comment that "whether retirement is decades away or just around the corner"^[1] people should check their position reflects the fact that voluntary National Insurance top-ups and changes to contribution patterns can only be made prospectively or, in limited cases, for recent past years.

The State Pension age is currently 66 and scheduled to rise to 67 between 2026 and 2028, meaning the 45-54 cohort highlighted by HMRC has between 12 and 22 years to retirement. This is the window during which earnings are typically highest and when individuals have the greatest capacity to make additional pension provision, whether through increased National Insurance, workplace pensions, or personal contributions.

For business owners, this planning window coincides with what may be peak business value and exit planning. Directors in their late 40s and 50s often begin considering succession, sale, or wind-down options. Understanding State Pension entitlement forms part of the wider retirement income calculation that informs these decisions - including how much capital needs to be extracted from a business to fund retirement, and over what timescale.

Pension Awareness Week and Wider Context

Pension Awareness Week, running from 15 to 18 September 2026, is an annual campaign coordinated across government and the pensions industry. HMRC's intervention this year focuses specifically on State Pension visibility, using the 7 million figure to quantify the scale of non-engagement and to promote digital tools that reduce friction in checking forecasts.

The department's research suggests that even where people have concerns - about career breaks, lost pensions, or complexity - many are not translating that concern into action. The survey finding that 26% of people feel retirement is too far away to think about^[1] points to a gap between awareness of the need to plan and the motivation to take initial steps.

For the self-employed and director population, this gap may be compounded by a perception that State Pension planning is less relevant than for employees, or that business ownership itself constitutes a form of retirement provision. In practice, State Pension entitlement is independent of business assets and provides a baseline income in retirement regardless of business success or failure. Directors who assume their company value or retained earnings will fully fund retirement may be underestimating longevity risk or overestimating the net proceeds of a business sale or wind-down.