You generally build up National Insurance contributions throughout your working life – but if you’ve had breaks in your employment, then you may have gaps in your record
Thousands of people have been given more time to boost their state pension potentially by thousands of pounds after the Government “softened” an upcoming April deadline.
This deadline relates to plugging gaps in your National Insurance record, as this can impact how much state pension you receive in later life. You generally build up National Insurance contributions throughout your working life – but if you’ve had breaks in your employment, then you may have gaps in your record.
If you have gaps in your record, then you won’t be entitled to the full state pension. The full new state pension is worth £221.20 a week, and the full basic state pension is £169.50 a week. These are rising to £230.25 a week, and £176.45 a week, respectively. At the moment, you can buy missing National Insurance years dating back to 2006 – but after April 5, 2025, you will only be able to go back six tax years.
However, in an update today, it was confirmed that anyone who cannot get through to the Department for Work and Pensions (DWP) helpline will be able to log an inquiry with the Future Pension Centre for a call back. As long as you do this before April 5, you will still be able to make payments after this deadline.
You should get a call back within about eight weeks. It normally costs £824 to buy a missing National Insurance year and this adds up to £328 each year to your pre-tax state pension. If you’re missing partial years, it will cost you less. To check whether you need to plug any gaps, contact the free Future Pension Centre on 0800 731 0175 if you’re under state pension age, or the Pension Service helpline on 0800 731 0469 if you’re already at state pension age.
It is important to do this, as some people can get free National Insurance credits that can plug gaps in their record – for example, if you were claiming statutory sick pay and not earning enough for a qualifying year, or if you were claiming work-related benefits or Child Benefit.
Steve Webb, partner at pension consultants LCP, said: “After the chaos in the run-up to previous deadlines, it is good that the Government has planned ahead to make sure that people do not miss out simply because they cannot get through on official phonelines to discuss state pension top-ups. For many people a state pension top-up will be excellent value.
“But it is useful to be able to discuss your options with someone who can see your NI record and in particular highlight if topping up some years would be of little or no value. Whilst it would be better if people could simply call ahead of the deadline and get through, at least there is now the reassurance that those who try to make contact before the deadline will still be able to make payments after the deadline has passed.”
Most people need 35 qualifying years on their National Insurance record to get the full new state pension, and ten years to receive anything at all. For the old state pension, you normally need 30 qualifying years if you’re a man who was born between 1945 and 1951, or 44 qualifying years if you’re a man who was born before 1945. If you’re a woman, you usually need 30 qualifying years if you were born between 1950 and 1953, or 39 qualifying years if you were born before 1950.