State pensioners born prior to 1959 have been issued a 36-day warning to boost their National Insurance contributions. HMRC is urging individuals to see if they could enhance their state pension by making voluntary national insurance (NI) contributions before the 5 April 2025 deadline.
The state pension underwent changes for those reaching state pension age from 6 April 2016 onwards. Men born on or after 6 April 1951 and women born on or after 6 April 1953 may be eligible for the new state pension.
The state pension is determined by the number of qualifying years in an individual’s NI record. A year may qualify if the person has paid sufficient NI or qualified for NI credits for that year.
A non-qualifying year is often referred to as a gap in the person’s NI record. To be eligible for the new state pension, 10 qualifying years are required, and 35 qualifying years are needed for the full amount.
Those with between 10 and 35 qualifying years will receive a proportionate amount based on their contribution history. Individuals may be able to fill gaps in their record by making voluntary NI contributions, but several conditions apply, including being within the deadline to make contributions for the tax year in which they have the gap, reports Birmingham Live.
The previous government extended the deadline to pay voluntary National Insurance contributions to 5 April 2025 for those affected by the new state pension transitional arrangements. It is possible to make voluntary NI contributions by 5 April 2025 for the tax years from 6 April 2018 to 5 April 2024, under the rules normally applying; and the tax years from 6 April 2006 to 5 April 2018, under the extension announced by the previous government.
From 6 April 2025, it will no longer be possible to make voluntary contributions in respect of the tax years from 6 April 2006 to 5 April 2019.
