The government is launching a new online service to help customers check for and fill any gaps in their National Insurance (NI) record.
The Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) have improved their joint “Check your State Pension forecast” to provide a full digital solution. The service details voluntary national insurance contributions and potential pension increases allowing users below state pension age to fill NI record gaps which could enhance their pension benefits.
People have until April 5 2025, to pay voluntary contributions to fill NI record gaps between April 6 2006, and April 5 2018, but after April 6 2025, voluntary contributions can only cover the previous six tax years.
Financial Secretary to the Treasury Nigel Huddleston says: “Having peace of mind when planning for retirement is crucial to ensure people can enjoy later life. That’s why HMRC has launched this new online service today, making a real difference for thousands of pensioners in their retirement while providing certainty to those in their middle years and those still planning ahead.”
Minister for Pensions Paul Maynard says: “The State Pension is the foundation of income in retirement, which is why we have introduced this new online tool to help simplify boosting it for those who are able to. I would encourage everyone to check their State Pension forecast and to take a look at how they could improve their State Pension award with only a few simple clicks.”
Standard Life retirement savings director Mike Ambery says: “We welcome the launch of the Government’s new online NI contribution checking service and encourage everyone to check their contribution status, and to get a State Pension forecast, as the payment is a vital source of income in retirement for millions. Yet many people are unaware that to receive the maximum payment they’ll need 35 years National Insurance contributions. The good news is that until April 2025 voluntary backdated contributions can be made for any missing years going back as far as 2006, after which the contributions can only be backdated for the previous six years.
“Paying voluntary National Insurance contributions could make a massive difference to people’s futures. Based on the 2024/25 rates, buying a full National Insurance year could boost the new State Pension by £303 a year. Someone starting to claim at 66 and living for another 20 years could see their State Pension increase by around £6,060 as a result of making the additional payment.
“However, it’s very important people consider their own situations, as there could be many reasons why voluntary National Insurance contributions might not suit people’s circumstances, such as if they have sufficient time to make up the required number of years. The new online service should help people quickly and easily see if it’s the right decision to make.”