People in the UK have less than six months left to fill gaps in their national insurance (NI) record dating back to 2006 to maximise their state pension, as reported by Wales Online. Since April, over 10,000 payments totalling £12.5 million have been made through a new digital service launched by HM Revenue & Customs (HMRC) to boost state pensions.
The online service allows individuals to check for gaps in their NI record, calculate the potential increase in their state pension by making a payment, and proceed to make voluntary contributions up until April 5, 2025. This opportunity applies to gaps in the NI record between April 6, 2006, and April 5, 2018. Following this deadline, contributions can only be made for the previous six tax years in line with standard time limits.
Statistics from the Department for Work and Pensions (DWP) reveal that 51% of customers topped up one year of their NI record, with the average online payment amounting to £1,193. The largest weekly State Pension increase recorded is £107.44. Since its launch, 3.7 million people have utilised the online State Pension forecast tool on GOV.UK.
Customers can access the Check your State Pension forecast tool through their online HMRC account or the HMRC app. The tool provides information on their potential retirement date, annual, monthly, and weekly forecasts, and enables users to review their NI record. Those without an online HMRC account can register on GOV.UK to benefit from these services.
As the deadline approaches, individuals are encouraged to take advantage of this opportunity to secure their financial future in retirement. Making the most of this vital pension change can have a significant impact on the state pension amount individuals receive in their later years.