More than 10,000 payments have been made through a new online system designed to help people increase their state pension, with a total of \u00a312.5 million contributed since its launch.<\/p>\n\n\n\n
Individuals hoping to benefit from this measure have until April 5, 2025 to address national insurance (NI) gaps dating back to 2006, after which the normal six-year payment limit resumes.<\/p>\n\n\n\n
Ordinarily, voluntary NI contributions can only be made for the last six tax years<\/strong>. As part of the new state pension transitional arrangements, the UK government<\/a> extended this timeframe, allowing eligible individuals to fill gaps going as far back as April 2006<\/strong>. <\/p>\n\n\n\n The extension ends in early April this year, meaning this opportunity will no longer apply beyond that date.<\/p>\n\n\n\n Men born after April 6, 1951<\/strong>, and women born after April 6, 1953, are eligible to benefit. Some may also qualify for NI credits, which serve as alternatives to paid contributions.<\/p>\n\n\n\n Analysis of the digital service shows that 51%<\/strong> of customers chose to top up just one year of missing contributions, with the average online payment being \u00a31,193. The service, launched in April 2023, has proven accessible and popular. As personal finance analyst Alice Haine<\/a> noted :<\/p>\n\n\n\n Plugging gaps in your record is relatively straightforward since the Government rolled out its new NI payments services in April last year \u2013 a State Pension forecast tool that has been checked by 3.7m since its launch.<\/em><\/p>\n<\/blockquote>\n\n\n\n According to Alice Haine<\/strong>,<\/p>\n\n\n\n “People typically need at least 10 qualifying years of NI (national insurance) contributions to receive any state pension at all and at least 35 years to receive the full new State Pension \u2013 though they don’t need to be consecutive years.”<\/em><\/p>\n<\/blockquote>\n\n\n\n A full additional year costs about \u00a3825<\/strong>, though partial years can start at \u00a316<\/strong>. Each additional year adds around \u00a3329 annually<\/strong>, which means a return on investment can be achieved in roughly three years, assuming eligibility.<\/p>\n\n\n\n Still, Haine emphasises caution :<\/p>\n\n\n\n Plugging gaps can be quite an expensive process, so it is important to assess whether you actually need to buy back any missing years. <\/em><\/p>\n\n\n\n This will depend on how many more years you plan to work, and whether you are eligible for NI tax credits, which fill the gaps, such as those who have been sick, were unemployed or took time out to raise a family or care for elderly relations.<\/em><\/p>\n<\/blockquote>\n\n\n\n51% of Users Top Up Just One Year<\/h2>\n\n\n\n
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Pension Value : Years Needed and Return on Investment<\/h2>\n\n\n\n
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Using the Online System to Check and Pay<\/h2>\n\n\n\n