Thousands of state pensioners born before 1959 have just a few weeks left to top up their National Insurance (NI) contributions and secure a higher pension payout. The deadline to backdate missing NI contributions falls on April 5, 2025, after which pensioners will only be able to purchase six years’ worth of contributions instead of the current 18 years dating back to 2006.
With each year of National Insurance contributions adding up to £328.64 annually to a pensioner’s state pension, those who act now could significantly increase their retirement income. Experts are urging those approaching retirement to check their NI records immediately to avoid missing out on potentially thousands of pounds in extra payments.
Why Is This Deadline Important?
According to Birmingham Live, pensioners need at least 35 years of National Insurance contributions to qualify for the full state pension. Currently, individuals can purchase missing contributions dating back to 2006, but from April 6, 2025, they will only be able to backdate payments for six years instead of 18.
Jonathan Watts-Lay, director at WEALTH at work, emphasized the urgency, saying:
“With the April 5 deadline fast approaching, it is important for those who think they may have not built enough entitlement to receive the full state pension to check their records now.”
Those who took career breaks, worked abroad, or cared for children or elderly relatives may have gaps in their NI record, which could reduce their state pension entitlement.
How Much Does It Cost to Top Up National Insurance?
For individuals filling a full year’s NI gap, the cost is £17.45 per week, amounting to £907.40 per year. While this might seem like a large expense, each additional year of contributions increases the state pension by up to £6.32 per week, which equals £328.64 per year before any future pension increases are applied.
In some cases, pensioners who fill multiple years of missing NI contributions could see their state pension increase by thousands of pounds over time. HMRC has launched an online tool to make the process of checking and paying for missing contributions easier, with over 10,000 pensioners already using the service.
Who Should Check Their NI Contributions?
Watts-Lay advised that anyone with more than six years of NI gaps should consider filling them before the deadline. This includes individuals who:
- Took career breaks and did not pay voluntary NI contributions.
- Worked overseas and did not contribute to the UK system.
- Had periods of self-employment where they may not have paid sufficient NI.
- Took time off for caring responsibilities and missed qualifying contributions.
With just weeks left before the April 5 cut-off, experts are urging pensioners to act quickly to avoid losing the chance to secure a higher state pension.
