THOUSANDS of households are being urged to check their state pension entitlement ahead of a rapidly approaching deadline.
There are less than six months left for people to fill any gaps in their National Insurance (NI) records, going back as far as 2006, to maximise their state pension.
More than 10,000 payments worth £12.5 million have already been made through the new digital service to boost state pensions since it launched in April, HM Revenue and Customs (HMRC) has revealed.
People have until April 5 2025 to maximise their state pension by making voluntary contributions to fill any gaps in their NI record between April 6 2006 and April 5 2018.
Usually people can only pay voluntary contributions for the past six tax years, and after the April 5 deadline next year the normal six-tax year time limit will apply.
In 2023, the previous government extended the deadline to pay voluntary NI contributions to April 5 2025 for those affected by new state pension transitional arrangements, covering the tax years running from April 6 2006 to April 5 2018.
The extended deadline has allowed people more time to consider what is right for them and make their contributions.
Men born after April 6 1951 and women born after April 6 1953 are eligible to make voluntary NI contributions to boost their new state pension.
Some people may be entitled to NI credits rather than needing to pay contributions, so they will need to check and consider what is right for them.
HMRC said further analysis of the use of the online service shows the majority (51%) of customers topped up one year of their NI record, with the average online payment being £1,193.
Pensions minister Emma Reynolds said: “We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement.
“That’s why I urge everyone to check if they could benefit by filling gaps before the deadline passes. Using our online tool means only a few clicks could make a huge difference to your future.”
Alice Haine, personal finance analyst at Bestinvest, said: “Plugging gaps can be quite an expensive process, so it is important to assess whether you actually need to buy back any missing years.
“This will depend on how many more years you plan to work, and whether you are eligible for NI tax credits, which fill the gaps, such as those who have been sick, were unemployed or took time out to raise a family or care for elderly relations.”
You can access it through the ‘Check your State Pension forecast’ page on Gov.uk.
It’s also available through the HMRC app, which you can download free on the Apple App Store and Google Play Store.
You’ll need to log in using your Personal Tax Account login details. If you don’t already have an online HMRC account, you can register at Gov.uk.
It shows you how much your state pension could increase by and what NI years you’ll need to buy to achieve this.
You’ll then be able to pay for these missing years securely online, without having to call up separately.
You need to pay for these in full – you can’t pay in instalments.
You can’t use the online service if you’re already getting your state pension or if you’re looking to fill gaps from when you were self-employed or working abroad.
People can find out more about making voluntary contributions and check their state pension forecast on the government website.
In some cases, buying back missing years can be really valuable.
But, earning back the years isn’t free so your voluntary contributions do come at a price.
If you’re filling gaps between 2006/07 to 2015/16 you’ll be paying the 2022/23 rates for contributions.
It works out to be worth £15.85 a week which means it costs £824.20 to buy one year of contributions.
As the state pension was £185.15 per week in 2022/23, this boost would add £5.29 per week or around £275 per year.
Although you’d have to pay £8,242 (10 lots of £824.20), the annual state pension boost would be around £2,750.
Someone who was retired for 20 years would get back around £55,000 in total (before tax).
Anyone who tops up their record after April 2025 will pay those rates.
If you’re currently unable to use the new online tool, or you’d prefer to talk to someone on the phone, you can still call up to find out more information about your NI record and to pay for missing years.
IF you aren't eligible for the full state pension, buying back missing years can be really valuable.
But earning back the years isn’t free, so your voluntary contributions come at a price.
If you fill gaps between 2006/07 and 2015/16, you’ll pay the 2022/23 rates for contributions.
It is worth £15.85 a week, which means it costs £824.20 to buy one year of contributions.
As the state pension was £185.15 per week in 2022/23, this boost would add £5.29 per week or around £275 per year.
Although you’d have to pay £8,242 (10 lots of £824.20), the annual state pension boost would be around £2,750.
Someone who was retired for 20 years would get back around £55,000 in total (before tax).
Anyone under 73 can make voluntary pension contributions, as it’s assumed everyone under this age will claim the new state pension.
If you’re below the state pension age, you can check your state pension forecast by visiting www.gov.uk/check-state-pension to determine if you’ll benefit from paying voluntary contributions.
You can also contact the Future Pension Centre by calling 0800 731 0175.
If you’ve reached state pension age, contact the Pension Service to find out if you’ll benefit from voluntary contributions.
You can contact this service in several different ways by visiting www.gov.uk/contact-pension-service.
You can usually pay voluntary contributions for the past six years.
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