Six months left – Are you missing out on increasing your state pension?

The deadline for voluntary National Insurance (NI) contributions is fast approaching, leaving you with little time to fill gaps in your NI record to maximise your state pension.  

HM Revenue & Customs (HMRC) has reminded taxpayers that the window to fill these gaps dating back to 6 April 2006 will close on 5 April 2025.  

After this deadline, people will only be able to make contributions for the previous six tax years. 

If you have ever had periods where you were not working or earning enough to pay NI, you may have gaps in your record that could affect the amount of state pension you receive.  

However, by making voluntary NI contributions, you can fill in those gaps and potentially boost your weekly state pension by as much as £107.44. 

Why are National Insurance contributions so important? 

Your state pension is based on the number of qualifying years of NI contributions you have made during your working life.  

Qualifying years are the years in which you have either paid NI contributions or received NI credits (for example, when you are unemployed or caring for someone).  

To receive the full amount of state pension, you need a minimum number of qualifying years. 

For those eligible for the basic state pension, which applies to people who reached state pension age before 6 April 2016, you need 30 qualifying years to receive the full amount.  

If you have fewer than 30 years, your state pension will be reduced. 

For those under the new state pension system, which applies to anyone who reached state pension age on or after 6 April 2016, the requirements are stricter.  

You will need at least 10 qualifying years to receive any state pension, and 35 qualifying years to receive the full amount, which is currently up to £203.85 per week. 

The April 2025 deadline 

The opportunity to backdate NI contributions beyond the usual six-year limit is a temporary measure.  

From 6 April 2025, you will only be able to fill gaps for the last six tax years, meaning any gaps between 2006 and 2018 will no longer be eligible for voluntary contributions. 

In the first six months of the 2024/25 tax year alone, more than 10,000 people have made payments worth £12.5 million through the state pension digital service.  

The average top-up has been £1,193, with many people securing increases to their future pension. 

How to check your National Insurance record 

To check for gaps in your NI record, you can use the state pension forecast tool on the Government’s website.  

This will show you how many qualifying years you currently have and whether you need to make any voluntary contributions to fill in the gaps.  

If you decide to make voluntary payments, you can do so online using HMRC’s digital service. 

Remember, even just one additional qualifying year can increase your weekly state pension, so it is worth checking whether you can fill any gaps before 5 April 2025.  

Speak to us today to assess your situation and understand how topping up your NI contributions could benefit you in retirement.