How do proponents of an intermediate state interpret Matthew 7:21-23?

Matthew 7:21-23 (ESV): > 21 “Not everyone who says to me, ‘Lord, Lord,’ will enter the kingdom of heaven, but the one who does the will of my Father who is in heaven. 22 **On that day** many will say to me, ‘Lord, Lord, did we not prophesy in your name, and cast out demons in your name, and do many mighty works in your name?’ 23 **And then will I declare to them, ‘I never knew you; depart from me, you workers of lawlessness.**’ *"On that day ..."* -- what day? Is Jesus talking about the day of his Second Coming / Judgement Day? If so, then it means that those individuals didn't know they weren't saved until *that* day. However, if there is an [intermediate state](https://en.wikipedia.org/wiki/Intermediate_state) in which both saved and lost go to intermediate forms of heaven and hell immediately upon death, then there is no need to wait for a Judgement Day. One would instantly know one's judgement as soon as one dies, depending on where one goes in the intermediate state (heaven or hell). **Questions** - Do people in the intermediate state already know whether they are saved or lost (i.e. their judgement)? - If they do, then how do proponents of an intermediate state make sense of the fact that Matthew 7:21-23 seems to convey a degree of surprise in the individuals on Judgement Day? How can they be puzzled by their judgement if they already knew what their judgement was, long ago, as soon as they entered the intermediate state (e.g. see [Rich man and Lazarus](https://en.wikipedia.org/wiki/Rich_man_and_Lazarus)) ?