The deadline to boost state pension entitlement is less than six months away, with people having until April 5, 2025, to maximise their state pension by making voluntary contributions to fill gaps in their National Insurance (NI) record going back to 2006.
More than 10,000 payments amounting to £12.5 million have already been made through the new digital service to boost people’s state pensions since it was introduced in April, as per HM Revenue & Customs (HMRC) data.
Individuals have the opportunity to fill any gaps in their NI records between April 6, 2006, and April 5, 2018, to maximise their state pension. Typically, voluntary contributions can be made only for the past six tax years, and after the upcoming April 5 deadline, the standard six-tax-year time limit will be reinstated.
In 2023, the government extended the deadline for voluntary NI contributions to April 5, 2025, for those impacted by new state pension transitional arrangements covering the tax years from April 6, 2006, to April 5, 2018, offering people more time to assess their options and contribute.
Men born after April 6, 1951, and women born after April 6, 1953, qualify to make voluntary NI contributions to enhance their new state pension. Some individuals might be entitled to NI credits instead of having to make contributions, so it is essential for them to review their circumstances and make informed decisions.
According to HMRC, analysis of the online service usage indicates that 51% of customers have topped up one year of their NI record, with the average online payment amounting to £1,193.
Pensions Minister Emma Reynolds emphasized the importance of individuals checking if they could benefit from filling gaps before the impending deadline, stating, “Using our online tool means only a few clicks could make a huge difference to your future.”
For more information on making voluntary contributions, individuals can visit www.gov.uk/voluntary-national-insurance-contributions and check their state pension forecast at www.gov.uk/check-state-pension.