The government has given people more time to pay National Insurance contributions towards their State Pension – but the cut off date is April 2025.
State Pension Entitlement
Entitlement to State Pension is something many people don’t think about until they are nearing retirement age, however we are urging individuals of all ages to check their state pension record NOW to check for gaps in their contribution records.
The State Pension changed in 2016 for men born after 6 April 1951 and women born after 6 April 1953. The new State Pension is based on people’s National Insurance records and individuals will normally need at least 10 qualifying years on their record to get any State Pension, and 35 years to get the full amount.
In order to properly plan for your retirement, you need to know your eligibility, this is particularly important for the self employed, those who have had low earnings, time outside the UK or breaks from working.
Dealing with gaps in your National Insurance record – deadline approaching!
If there are gaps in your National Insurance record which mean you don’t have enough years to qualify for State Pension, it is usually possible to make voluntary contributions to fill those gaps. However, if the gaps are between April 2006 and April 2016, you only have until 5 April 2025 to make the payment. After 5 April 2025 you will only be able to go back 6 years, which may not be enough.
The first step is to check your National Insurance record to find out if you have any gaps, how much it will cost to fill them, and assess if it would be beneficial to pay voluntary contributions.
If you have gaps due to a time when you were unemployed, on benefits, a carer, or caring for children, you may be eligible to get National Insurance credits to fill the gap free of charge.
How to check your record
You can check your record online here by signing into your Government Gateway account, if you have one. If you don’t have one you will have the option to set one up, which usually involves providing photo ID, for example your driving licence or passport.
If you are unable to check online, you can request a printed National Insurance Statement online here or by calling HMRC telephone on 0300 200 3500. You will need your National Insurance number and tell them what years you want your statement to cover, excluding the current and previous tax years.
Once you have your record, you need to assess how much it would cost to fill any gaps, and decide if you want to pay voluntary contributions. You can check your statement pension forecast in your Government Gateway account, and contact the Future Pension Centre here to find out if you will benefit from voluntary contributions.
Take action NOW
If you need help navigating your way through your state pension entitlement, we can help, but remember you only have until 5 April 2025 to fill gaps in older tax years, so check your records NOW to ensure you have enough time, and don’t miss out on this valuable entitlement.
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I hope you found the above interesting. As always, if you have any questions about this piece or any other finance-related matter, please do not hesitate to contact me.
Yours sincerely,
Graham Ponting CFP Chartered MCSI
Managing Partner
