Britons preparing for retirement have just weeks left to boost their state pension payments before a crucial deadline hits next month.
The Department for Work and Pensions (DWP) has issued an urgent warning about the approaching April 5 cutoff date and reminding households of an important online tool.
This deadline allows people to fill gaps in their National Insurance (NI) records dating back to 2006, if they have had years away from the workplace.
After this date, individuals will only be able to make voluntary contributions for the previous six tax years which means pensioners could lose thousands of pounds in potential payments.
To receive the “full” state pension – currently worth £221.20 a week – people must have enough “qualifying years” on their National Insurance (NI) records.
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Britons have only weeks left to boost their state pension
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Typically, people need around 35 NI years to get the full state pension which are accumulated through active employment or by receiving National Insurance credits.
Credits are granted for Britons during period of unemployment, illness, or while fulfilling parental or caregiving responsibilities.
Gaps usually occur when NI credits were not claimed, such as during career breaks or when not working enough hours.
As it stands, it costs around £824 to buy a full year of National Insurance contributions. However, this investment can add thousands of pounds to your state pension over time.
Until April 5, 2025, people can buy back 13 NI years dating between 2006 and 2018. From April 6, this opportunity will be drastically reduced.
HM Revenue and Customs (HMRC) and the DWP offer an online state pension forecast service to help people check for gaps.
Anyone who is already claiming a state pension should contact the Pension Service to pay for missing National Insurance years.
Non-pensioners should call the DWP’s Future Pension Service. After payment, it may take up to 60 working days for contributions to appear on your NI record.
It should be noted that this sum will be backdated to the date of payment, not when you started claiming the state pension.
Jonathan Watts-Lay, Director at WEALTH at work, comments: “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.
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Many Britons are concerned about their pension savings GETTY “Those who have a gap of more than six years in National Insurance contributions, which may include those who have taken a career break, have worked abroad or had time off for child or elderly care, may want to consider filling these gaps in their record now to ensure they are on track to receive the full State Pension entitlement at retirement.
“It’s exceptionally important that people get the support needed to understand all their options when approaching retirement so that they are able to make informed decisions.
“This includes realising all the options for creating a retirement income such as a workplace pension or any other saving such as an ISA, as well how to find out their state pension entitlement.
“Many leading companies now provide this support in the workplace through financial education, guidance and investment advice. So, it’s always worth speaking to your employee to see what support they provide.”