UK Government has recently announced that thousands of taxpayers can now fill the gaps in their National Insurance (NI) records dating back to April 2006, up until 5th April 2025.
If you work in the UK and plan to live here long-term until retirement, this is a golden opportunity to boost your pension by tens of thousands of pounds.
State Pension:
In our previous articles, you learned about how the State Pension works.
To receive the State Pension, you need to have contributed for a minimum of 35 years and reach the qualifying age.
Additionally, you need to have at least 10 years of NI contributions to be eligible for the State Pension.
If you meet these criteria and plan to claim the State Pension, you must submit your application within four months before reaching the State Retirement Age.
Filling the NI Contributions Gaps:
Under the current government regulations, you can make backdated contributions for the missing NI years dating back to 2006.
However, after the deadline of 5th April 2025, individuals will only be able to go back six tax years.
To fill a complete voluntary NI contribution year, it costs £824, and it increases your State Pension by £275 per year.
After ten years, it will add an extra £2,750.
The amount you can increase depends on how many gaps you have and the length of time you’ll be claiming the State Pension, but for some individuals, it can add up to tens of thousands of pounds.
Eligibility of NI Contributions:
You are approaching the age to claim the State Pension but don’t have enough qualifying years for the full amount.
You know that you won’t reach the required qualifying years for the full State Pension during your working years.
You are self-employed, file self-assessment tax returns, and don’t have to pay Class 2 contributions due to low profits.
You reside outside the UK but want to qualify for some benefits.
Next Steps:
Once you decide to make voluntary National Insurance contributions, you can log in to GOV.UK and check your NI record.
When you determine the gaps in your record and the amount to be paid, you can make the payment on the government website.
Be cautious when conducting online searches and verify the correct website and information.
Please note, do not trust any unfamiliar organisations and do not send your personal information or money to anyone.
