The process involves checking your National Insurance record to see if you have any gaps that could prevent you from claiming the full state pension
HMRC has issued a six-month warning for thousands of people to check if they can boost their state pension entitlement.
The process involves checking your National Insurance record to see if you have any gaps that could prevent you from claiming the full state pension. Most people need 35 qualifying years on their National Insurance record to get the full new state pension, and ten years to receive anything at all.
At the moment, you can buy back missing National Insurance years dating back to 2006 – but the rules are changing so that after April 5, 2025, you will only be able to go back six tax years. It normally costs £824 to buy a missing National Insurance year and this adds up to £328 each year to your pre-tax state pension. If you’re missing partial years, it will cost you less.
New figures released today by HMRC shows more than 10,000 payments worth £12.5million have been made through the new digital service that was launched to help people purchase National Insurance contributions. You can check your state pension forecast with a tool on GOV.UK to see if you may need to act now.
Have you been able to successfully top up your state pension? Let us know by emailing: levi.winchester@reachplc.com
You may not necessarily need to spend money buying National Insurance contributions, as some people will be able to get free National Insurance credits – so make sure you check this before you hand over any money. For example, you may be entitled to National Insurance credits if you were claiming statutory sick pay and not earning enough for a qualifying year.
Those who claim benefits such as Jobseeker’s Allowance and Employment and Support Allowance may also qualify for National Insurance credits. You can find more examples of ways to get free National Insurance credits on GOV.UK. You should also check if the gains from buying extra years may be reduced if it pushes you into the higher 40% tax bracket.
Emma Reynolds, Minister for Pensions, said: “We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement. That’s why I urge everyone to check if they could benefit by filling gaps before the deadline passes. Using our online tool means only a few clicks could make a huge difference to your future.”
You can contact the free Future Pension Centre on 0800 731 0175 to check if you’d benefit from plugging any gaps in your National Insurance record, or if you’re already at state pension age, contact the free Pension Service helpline on 0800 731 0469.
