If you are hoping to maximise your State Pension, you only have two months left to take action before a key deadline on 5 April 2025.
After this date, a significant change will come into effect, limiting how far back you can fill gaps in your National Insurance (NI) record.
With the State Pension set to increase in April 2025, you should review your NI contributions now and make sure you are not missing out on extra pension income.
National Insurance record – Your key to the State Pension
Your State Pension entitlement is based on your NI record.
If you have gaps in your contributions, you may not qualify for the full State Pension, but you still have time to fix this.
Until 5 April 2025, you can fill gaps in your NI record dating back to 6 April 2006.
After this date, you will only be able to top up missing years from the previous six tax years.
This means if you have older gaps, your chance to boost your pension for life could soon be gone.
The State Pension is increasing – make sure you benefit
Under the Government’s triple lock system, the State Pension is rising by 4.1 per cent from April 2025, meaning those who maximise their NI record now will benefit from a higher payout.
Here is what that looks like:
- New State Pension (for those retiring after April 2016) – £230.25 per week (up from £221.20)
- Old Basic State Pension (for those who reached State Pension age before April 2016) – £176.45 per week (up from £169.50)
How many people are taking advantage?
Since the Government launched its digital service last year, over 37,000 people have voluntarily topped up their NI records, adding a total of 68,673 years to their records – equivalent to an extra £35 million in future pension payouts.
The figures show that 65 per cent of the years topped up are from 2017 onwards, meaning many people still have older gaps to fill before they lose the opportunity in April 2025.
What should you do next?
- Check your National Insurance record – You can do this via your Personal Tax Account on the Government’s website.
- See if you need to make voluntary contributions – If you have gaps in your record, you may be able to top them up at a relatively low cost compared to the potential pension boost.
- Get professional advice – Our accountants can help you work out whether it is worth making voluntary contributions based on your circumstances.
This is a rare opportunity to secure thousands of pounds in extra retirement income, but it is disappearing fast.
If you would like guidance on your National Insurance record or State Pension options, get in touch with our accountancy experts today.
