HMRC has alerted state pension recipients they might need to fill gaps in their National Insurance contributions in order to be able to get their full State Pension benefits.
Individuals who do not make National Insurance payments may have deficiencies in their National Insurance contribution records.
HMRC Urges Pensioners to Check National Insurance Records
Many state pensioners are noticing potential gaps in their National Insurance (NI) contributions. This often happens when individuals fail to pay NI contributions throughout their working life.
A 63-year-old taxpayer who has worked throughout their life, expressed their concern after checking their pension details: “I have checked my Government pension and I found out that I have a lower monthly pension,” the taxpayer said. “It looks like I was paying a lower rate of income tax for six years as self-employed which was between permanent employment. I'm 63, and I have worked all my life, can I get full pension?”
According to The Express, HMRC responded, saying: “You usually need 35 qualifying years of National Insurance contributions to get the full amount. You'd need to check your NI history to view how many qualifying years you have.”
The taxpayer then proceeded to ask: “I do have over 45 years contributions but six years I worked self-employed but paid less for those two years. Is there any way I can top those six years up?”
To which HMRC replied : “You'd need to contact the Future Pension Centre for an adviser to confirm.
“If they check your record and then confirm it's worth your while to make a top-up for those years, we can then advise on the next steps.”
How NI Gaps Could Impact Your State Pension
Gaps could be the result of low earnings during your working years, or not claiming benefits during your unemployment periods.
This can also happen if you are self-employed but did not make NI contributions due to earning low income, or if you spent time working or living abroad.
Gaps in your National Insurance record can mean that you may lack the necessary years of contributions to qualify for a State Pension or to be eligible for certain benefits.
In order to avoid encountering this kind of problem, you might need to address any deficiencies in your contribution record as stated by HMRC.