HMRC is advising individuals to check their National Insurance (NI) record and consider making voluntary contributions before 5 April 2025 to potentially increase their State Pension.
The New State Pension: A Comprehensive Overview
The state pension changed for people who reach state pension age from 6 April 2016 onwards. Men born on or after 6 April 1951 and women born on or after 6 April 1953 may be eligible for the new state pension.
The new state pension is calculated based on National Insurance (NI) contribution history, specifically focusing on “qualifying years”. A qualifying year occurs when an individual:
- Pays sufficient National Insurance ( NI) contributions, or
- Receives eligible NI credits for that particular year
Years that do not meet these criteria are considered “gaps” in an individual’s NI record.
Pension Eligibility Criteria
Pension Eligibility Criteria
The new state pension has clear entry and full entitlement thresholds:
- Minimum requirement: 10 qualifying years for basic eligibility
- Full pension: 35 qualifying years needed
For individuals with between 10 and 35 qualifying years, the pension will be proportionally calculated. This means the amount received will directly reflect the person’s contribution history, ensuring a fair and transparent approach to retirement income.
How to take the maximum benefit from this golden temporary extension ending 5th April 25
Individuals with gaps in their State Pension record have just less than one month left to take advantage of a limited-time opportunity to purchase missing National Insurance (NI) years dating back to 2006 ( 6 April 2006 to 5 April 2018).
To qualify, payments or callback requests must be submitted by 5 April. After this deadline, contributions can only be made for gaps from the last six tax years ( April 2018 to 5 April 2024).
From Where to Start :
Most people can check whether it’s beneficial to buy missing National Insurance (NI) years and make payments using the online state pension service or the HMRC app or request a paper statement.
Some people cannot access the online tool, including those who are already over the State Pension age, were self-employed during the years they want to pay for, or lived abroad in the years they are looking to fill.
In that case, you should act now and contact the DWP’s Future Pension Centre or request a callback to discuss voluntary NI contributions before the deadline, you will still be allowed to make a payment after it has passed.
If you can’t get through to the Department for Work and Pensions (DWP) by phone before the deadline, you can submit an online call-back request form.
DWP will get back to you within around eight weeks to discuss voluntary National Insurance (NI) payments. There’s no need to follow up with DWP or HMRC once your request is in.
As long as you submit your request by 5 April 2025, you’ll still be able to pay voluntary NI contributions covering gaps back to 6 April 2006, even after the deadline.
After submitting your request, you’ll see a confirmation message on your screen—it’s a good idea to take a screenshot for your records
Where to Start: Step-by-Step Guide
Should You Consider Paying Voluntary NI Contributions?
Topping up your National Insurance (NI) record can increase your State Pension, but it’s important to ensure you’re paying for the right years.
Before making a payment, check whether you’re eligible for free NI credits. Also, consider whether a higher State Pension could affect any means-tested benefits you receive.
What Does It Cost to Fill Gaps?
The cost of buying a full year of voluntary NI contributions (Class 3) was £824.20 for 2022-23. This has increased to £907.40 for both 2023-24 and 2024-25. If you’re making up part of a year, the cost will be lower.
Will It Pay Off in the Long Run?
The full new State Pension is currently £221.20 per week and will rise to £230.25 from April. You need 35 qualifying years to receive the full amount, with each extra year adding 1/35th to your total.
At today’s rates, one additional year would increase your State Pension by around £6.32 per week—equivalent to £329 per year. Over a 20-year retirement, this adds up to nearly £6,600 (before tax), making it a potentially worthwhile investment.
For self-employed individuals, NI contribution rules changed in April 2024, so it’s important to check how this impacts your pension entitlement.
Ready to maximize your State Pension? Need help with the process? We’re here to help! Contact us at 0333 023 1303 to discuss your situation and how we can assist you in maximizing your State Pension, ensuring you receive the retirement income you deserve.