There's still time to fill gaps in your State Pension to ensure you'll get the full amount

State Pension warning as UK workers could lose thousands if they miss deadline

There's only months left to fill any gaps in your National Insurance record or you could end up on a lower amount of State Pension

by · Birmingham Live

People are being warned of a fast-approaching deadline or they could lose thousands of pounds a year. Workers with shortfalls in their National Insurance record have less than six months to plug the gap or they'll end up on a much lower amount of State Pension.

More than 10,000 payments worth £12.5 million have been made through a digital service to boost people's State Pensions since it launched in April 2024. HM Revenue and Customs and the Department for Work and Pensions are encouraging people to act now and check their National Insurance record is up-to-date and complete.

You only have until the start of April 2025 to ensure you are in line to receive the full rate of the New State Pension, which is currently £221.20 a week for the maximum 35 years of National Insurance contributions. That's £11,502.40 a year, set to rise to £11,962.60 from next April under the triple lock system for working out annual increases.

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Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, the online investment platform, says people can add thousands a year to their State Pension by filling any gaps in their National Insurance records that would mean they are otherwise due to receive less than the full amount. She said: "Taxpayers with any shortfalls in their State Pension record have been urged by the Government to act now and plug the gap by making voluntary contributions before this golden opportunity passes. People can currently plug any shortfalls by backdating their National Insurance (NI) contributions - but the clock is ticking as the deadline to take advantage of this one-off concession closes in less than six months.

"Buying back missed years can be a great way for many people to bolster retirement income as the State Pension provides a guaranteed monthly income for the duration of your retirement. Most importantly, that income is currently set to increase year-on-year by at least 2.5 per cent and probably more, because of the triple lock.

"Checking your personal tax account will quickly identify any gaps in your National Insurance record and whether you have enough qualifying years to receive a full State Pension – an extremely valuable source of income considering the full New State Pension will rise by 4 per cent or £460 a month in April 2025. This will become vital in the later stages of life when you may not be fit enough to continue working or have inadequate private pension savings."

Taxpayers can usually only backdate their NI contribution history by six years but the Government is currently allowing people to pay to fill gaps on their NI record all the way back to April 6, 2006. After the April 5, 2025, deadline, the system will revert to the normal time limits, which means people will only be able to make voluntary contributions for the previous six tax years.

Your State Pension entitlement is determined by the number of qualifying NI years you have. People typically need at least 10 qualifying years of NI contributions to receive any State Pension at all and at least 35 years to receive the full New State Pension – though they don't need to be consecutive years.

Ms Haine added: "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.

"Plugging gaps in your record is relatively straightforward since the Government rolled out its new NI payments services in April this year – a State Pension forecast tool that has been checked by 3.7 million since its launch.

"People simply need to log into their personal tax account or the HMRC app to not only view any payment gaps but also check if they can plug those gaps directly through the Government's digital channels. A short survey assesses the person's suitability to pay online with those eligible to pay directly given a series of options to plug any gaps depending on when someone wants to stop working.

"Calculating whether to top up can be confusing though and ultimately there is no point paying for more years than you need because you won't get that money back which is why, for some people, calling the Government's Future Pension Service to double check how many years they can buy and whether voluntary contributions really will add to their State Pension may be key for those unsure about such a move.

"People who might need to top up include those who took a career break as well as low earners or expatriates living and working abroad. Pension shortfalls and errors that have come to light in the last decade have particularly affected women who gave up work to look after children and widows – and it is now thought many divorcees could also have a State Pension shock awaiting them, which is why keeping tabs on your State Pension record is so important.

"Remember, this deadline has been extended a couple of times in the past, which makes it more likely the Government will stick to the April cut-off point this time around. For this reason, those that think they might need to take action should start the process now."

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