The clock is ticking for those looking to enhance their State Pension benefits for anyone not yet in receipt of their state pension.
After 5 April 2025, changes will restrict your ability to address any deficits in your National Insurance contributions (NICs) that date back further than six years.
Why Your National Insurance contributions matter
The amount you will receive as a State Pension depends greatly on your NI record. You need a minimum of 10 qualifying years to receive any state pension, and to get the full state pension amount a total of 35 full NIC years will be needed.
Currently, any shortcomings in your contributions can still be amended, allowing you to claim the full State Pension.
For any gaps, you will have to pay the Class 3 NIC of £824.20 per year (up to 5 April 2023).
However, this opportunity extends only until the deadline, enabling contributions dating as far back as 6 April 2006 to be addressed.
Missing this window means you could permanently miss out on increasing your pension.
With the deadline nearing, what can you do to make sure you have filled in any gaps in your NI record?
- Review NICs – Access your Personal Tax Account on the Government’s website to view your current NI record.
- Consider voluntary contributions – If there are gaps, topping them up might be more cost-effective than you think, especially with the potential increase in pension income.
- Seek expert advice – Make the most informed decision, consider speaking with our team who can provide personalised advice for your financial situation.
- If you believe you may need to pay missing years – use this link to ‘register an interest’ before 5 April 2025, so that there is time to ascertain if payment is required. If you would like assistance with filling out this form, please let us know.
Submitting a request by 5 April 2025 will ensure you will still be able to pay voluntary NICs after the deadline has passed.
This window to strengthen your retirement income won’t stay open long.
For those interested in understanding more about their NI contributions or exploring their State Pension options, our team of accounting specialists is ready to assist. Contact us today.