Buying National Insurance Years – Beat the Deadline
ACTION: Check how much of the full state pension you are likely to receive
- If you are not yet at state pension age you can access your state pension forecast through the Government Gateway or contact the Future Pension Centre to find out if you may benefit from voluntary contributions. This will tell you how much state pension you will get based on your NI record to date and how much state pension you are likely to get if you work up to your state pension age.
- If you are already at state pension age you should check your NI record which will show you any NI years since 2006 that are 'incomplete'. If you have gaps that you are unlikely to fill by any other means and are not predicted to get the full amount of £185.15 a week, it could be worth making contributions to fill these gaps and increase your state pension - contact the Pension Service to find out if you may benefit from voluntary contributions.
ACTION: If there are gaps in your record, check whether there are opportunities to fill them with NI credits
As well as employment, activities such as caring for a family member, jury service, or periods on statutory maternity/paternity pay can earn you NI years. If you have been in any of these positions in years in which you had gaps in your NI record, you can apply for NI credits for that year. Full information on how to apply for any NI credits you may be eligible for is on the Government's NI credits page - Voluntary National Insurance: Gaps in your National Insurance record - GOV.UK (www.gov.uk)
ACTION: Decide if you should pay to increase your state pension
As noted above, until 31 July 2025, it is possible to buy NI years to fill gaps going back to 2006. When these transitional arrangements end, the number of extra years that can be bought reduces to the last six tax years, so it is important to begin the process of checking as soon as possible.
If a shortfall is likely and you have NI gaps between 2006 and 2016, a decision whether to make voluntary contributions needs to be made by the new deadline of 31 July 2025.
Each individual position will be different and the value of making voluntary contributions will depend on individual circumstances, but generally where there are gaps it should be a relatively cost-effective exercise.
A note on Partial Years
It is important to note that only full qualifying NI years count towards your state pension, which means that even if you have paid some contributions unless it is a full year it will not count.
However, it is possible to fully fund a partial year (to make it a full year), which is less expensive as you will only pay proportionately for the weeks you are missing, so this can be a very cost-effective way to increase your state pension.
If nothing else…
Bearing in mind the new deadline of 31 July 2025, consider checking your NI record (or those of your family) as soon as possible - particularly if you are in one of the categories outlined above – otherwise you could miss out on the opportunity to fill gaps from 2006-2016.