Time is running out for Brits to plug gaps in their National Insurance record and secure a bigger State Pension – with just two months left to act.
Since April last year, more than 37,000 people have rushed to top up over 68,000 years of NI, adding a staggering £35 million to their future pensions, according to new figures from HMRC.
And with the clock ticking down to the April 5 deadline, pensioners are being urged to check their records now – or risk missing out on thousands of pounds.
There are various reasons why people might have gaps in their NI contribution payments, including time spent abroad, low earnings periods, self-employment without contributions, or career breaks for childcare and family responsibilities.
This means they may not have amassed the 35 years of NI contributions needed to receive the maximum new state pension or the 30 years required for the lower basic state pension.
Currently, Britons can increase that State Pension payments by filling gaps in NI payments dating back to 2006, however this scheme is due to come to an end on April 5, 2025.
After the deadline passes, people will only be able to fill gaps from the previous six years.
It costs around £824 for each year of missing NI contributions, which will add £330 a year to your pension, meaning the investment will be paid back in less than three years.
What you need to know
* Time is running out – From April 6, 2025, only the last six tax years will be eligible for voluntary top-ups, meaning contributions from 2006 to 2018 will be permanently locked out.
* Huge financial gains – The biggest State Pension boost recorded so far is a whopping £113.76 extra per week – an increase of nearly £6,000 per year!
* The average top-up payment is £1,835, but the long-term benefits could far outweigh the cost.
Angela MacDonald, HMRC’s Deputy Chief Executive, urged pensioners to act fast, saying: “There are just two months left to check and fill any gaps in your National Insurance record from 2006 onwards.
“Don’t delay – it could make a huge difference to your finances in retirement.”
Rosie Hooper, chartered financial planner at Quilter Cheviot, said: “The latest figures from HMRC reveal just how many people have seized the opportunity to boost their State Pension by topping up missing National Insurance contributions.
“With the deadline fast approaching on 5 April, anyone who has gaps in their record should seriously consider whether making voluntary contributions could be a valuable investment.
“The fact that some top-ups have resulted in a weekly pension increase of as much as £113.76, equating to an annual increase of £5,915.92, underlines just how beneficial this can be.”
She added: “For those with gaps in their record—especially people in their late 40s, 50s, and 60s—checking eligibility should be a priority.
“The average online top-up payment is £1,835, so paying a relatively small price now could have a substantial impact on your financial wellbeing in retirement. In some cases, a few thousand pounds paid now could translate into tens of thousands in additional pension income over retirement, making it one of the most financially rewarding decisions they can make.”
How to check and top up
Visit GOV.UK here – https://www.gov.uk/voluntary-
