The deadline to fill gaps in your National Insurance (NI) record and potentially increase your state pension is fast approaching. You have until April 5, 2025, to make voluntary contributions covering gaps as far back as 2006.
With less than six months remaining, now is the time to act if you want to maximize your retirement income.
Why Does This Deadline Matter?
Your state pension is calculated based on your NI record. If you have missing years, your pension entitlement could be reduced. Normally, you can only pay for gaps in the past six tax years, but a temporary extension allows you to make voluntary contributions for gaps between:
- April 6, 2006, and April 5, 2018.
After April 5, 2025, this extended window closes, and the usual six-year rule applies again.
Who Is Eligible?
You may be eligible to make contributions if you were born:
- After April 6, 1951 (men).
- After April 6, 1953 (women).
Before paying, check if you’re entitled to NI credits, which could fill gaps at no cost.
How Much Does It Cost?
The cost to make up one year of NI contributions is typically £824.20 for the 2023/24 tax year. However, the actual amount may vary depending on the years you are covering.
Since the launch of a new digital service in April 2024, more than 10,000 payments worth £12.5 million have been made, with the average payment being £1,193, often topping up one year of NI contributions.
What Are the Benefits?
Filling gaps in your NI record can significantly increase your state pension. For example:
- Each additional qualifying year could boost your pension by up to £303 per year under the new state pension system.
The decision to make voluntary contributions can offer excellent long-term value, but you should carefully assess your situation before proceeding.
How to Check and Make Contributions
Check Your NI Record
Visit the HMRC National Insurance Record Service to see if you have gaps.Confirm Eligibility
Determine if making voluntary contributions is right for you. Some gaps may be filled with NI credits rather than payments.Make Payments
Payments can be made directly through HMRC’s online service.
Don’t Delay
Pensions minister Emma Reynolds emphasized the importance of taking action:
“We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement.”
With less than six months remaining, ensure you’ve reviewed your options and made any necessary contributions before the April 5, 2025 deadline.
For more details, visit gov.uk/voluntary-national-insurance-contributions.