State pensioners have been issued an urgent warning from the Department for Work and Pensions (DWP) and HMRC as a crucial deadline approaches for topping up retirement funds.
Both departments are expecting an increase in contributions and demand as the April 5, 2025, deadline nears for filling gaps in National Insurance records.
The warning comes as officials implement new measures to handle an expected wave of applications from those seeking to boost their state pension entitlements.
Under current rules, pensioners can buy back National Insurance contributions dating to 2006, but this opportunity will no longer be available after the deadline passes.
After the April 2025 deadline, individuals will only be able to buy back National Insurance contributions for the previous six tax years, rather than being able to date back to 2006.
HMRC’s phone lines remain open throughout most of the festive periodGETTY Exchequer Secretary to the Treasury, James Murray, told Liberal Democrat MP Freddie van Mierlo: “Both departments are putting in place measures to manage the expected demand in the run-up to the April 5, 2025 deadline, including managing the deployment of resources, the use of callbacks, digitising and improving forms for overseas individuals, interactive voice response messaging and directing customers to the digital service.”
Currently, individuals need 35 qualifying years on their National Insurance record to claim the full new state pension, which currently stands at £221.20 per week. They need a minimum of 10 qualifying years to receive any state pension at all.
Those with gaps in their records could receive significantly less state pension than expected, but voluntary contributions can be made to fill these gaps.
The original deadline of April 5, 2023, was extended twice – first until July 2023 and then to April 2025 – following a public awareness campaign by Martin Lewis, the money saving expert.
Lewis said: “Boosting your state pension by back-claiming or buying missing National Insurance years is one of the single most lucrative things you can do. Many people have been in touch to say they’re likely to gain £10,000s from it.”
Earlier this year, the DWP and HMRC launched a joint online service that allows people to check their state pension forecast and buy contributions for the years they need them.
Before this, to fill in gaps in one’s record, they needed to make two calls to check for gaps and then make payments for any needed top-ups.
Britons needed to contact the Future Pension Centre at the DWP to discuss which years they could top up, how much it would cost, and what impact it would have on their pension.
Then, they needed to phone HMRC to get an 18-digit reference number for the payment to be made.
The previous system was often described as “tedious” and “unusable” as Britons often struggled to get through to the phone line due to long queues.
However now, Murray explained that the Future Pension Centre and National Insurance helpline would remain in place for customers who are unable to use online service, adding: “As well as customers who prefer that route or who need additional assistance.”
On X, HMRC said: “Get your pension planning all wrapped up. You may be able to boost your #StatePension by making Voluntary National Insurance Contributions, but time is running out. Get started by checking your State Pension forecast via the HMRC app.”
Qualifying years can also be earned through employment or by claiming certain benefits.
Before making any voluntary National Insurance contributions, Britons are urged to check if they would benefit from claiming National Insurance Credits which are free for those who were claiming benefits or had caring responsibilities.