The Government is removing 13 years from the Voluntary National Insurance scheme from April 5, 2025 – meaning you’ve only got a month to act if you want to take advantage
State pensioners could potentially boost their state pension pot by up to £79,000 if they take action before April.
The government has issued a warning that it will be removing 13 years from the Voluntary National Insurance scheme as of April 5, 2025. Many people are unaware that the state pension is not automatically awarded at the maximum possible weekly payout.
In reality, you need a full National Insurance record of approximately 35 years of tax payments to qualify for a full state pension. At present, the full new state pension stands at around £221 per week, set to rise to £230 a week from April due to the Triple Lock.
However, you won’t necessarily receive the full amount unless you have a complete 35-year record of National Insurance payments. For those who have had periods of unemployment, child-rearing or working overseas, there may be gaps in their record which mean they don’t receive the full amount.
However, a system exists whereby you can purchase missing National Insurance years for your record. Through the Voluntary National Insurance scheme, you can buy up to 13 years for roughly £800 a year (less if you only need to pay for part of a year).
But each £800 can turn into £5,400 per year for a man and £6,100 a year for a woman, as the increase in your pension payout results in more money per year, reports the Express.
However, from April, the government will close access to 13 years of NI records, meaning you can no longer buy back those years.
Missing the deadline could result in some individuals not having enough National Insurance years on their record to qualify for a state pension. If you were short of 13 years and then bought them all back, it could add as much as £79,100 to a woman’s pension pot or £70,200 to a man’s, according to calculations by Martin Lewis on his ITV show The Martin Lewis Money Show Live.
These figures are based on an extra £6,100 a year for a woman and £5,400 a year more for a man. The government has issued a warning: “You have until 5 April 2025 to pay voluntary contributions to makeup for gaps between tax years April 2006 and April 2016 if you’re eligible.
“If you want to make voluntary contributions for the tax years 2016 to 2017 or 2017 to 2018, the deadline has been extended. You have until 5 April 2025 to pay.
“After 5 April 2025 you’ll only be able to pay for voluntary contributions for the past 6 years. This may not be enough to qualify for a new State Pension if you have fewer than 4 qualifying years on your National Insurance record. You’ll usually need at least 10 qualifying years in total.”
