The government has extended its deadline for people to voluntarily fill in the gaps in their national insurance (NI) record which could boost their state pension entitlement.
Those with gaps in their NI records dating all the way back to April 2006 will now have more time to decide whether they want to fill them in, potentially putting more towards their retirement fund. People have been able to retrospectively build their April 2006 to April 2016 record through voluntary contributions as part of transitional arrangements introduced with the new state pension.
Previously, the deadline was set for April 5 of this year, however, the government has now announced that an extension to July 31 will now be provided.
Read more: All the state pension changes coming within a few weeks
On Tuesday this week, a written ministerial statement by Financial Secretary to the Treasury Victoria Atkins said: “HMRC (HM Revenue and Customs) and DWP (the Department for Work and Pensions) have experienced a recent surge in customer contact.
“To ensure customers do not miss out, the Government intends to extend the April 5 deadline to pay voluntary NICs (national insurance contributions) to July 31 this year.
“This applies to years that would otherwise have been out of time to pay after April 5, up to and including the 2016/17 tax year. All voluntary NICs payments will be accepted at the existing 2022/23 rates until July 31.”
In a statement issued separately, Ms Atkins said: “We’ve listened to concerned members of the public and have acted.
“We recognise how important state pensions are for retired individuals, which is why we are giving people more time to fill any gaps in their national insurance record to help bolster their entitlement.”
In general, people need around 35 years of qualifying NI contributions to be eligible for the full state pension. Sir Steve Webb, a former Liberal Democrat pensions minister who is now a partner at consultants LCP, said: “This is great news for people thinking of topping up their state pension.
“For most people, paying voluntary NI contributions to deal with a shortfall in their state pension makes excellent financial sense. But it is also important to make sure that extra contributions are right in your individual case as sometimes additional contributions may not boost your pension.
“People need time to talk through their options with DWP and then make the correct payment to HMRC and this extension to the deadline should give them time to do this. The government is to be commended for listening to the calls to extend the deadline.”
Consumer champion Martin Lewis also highlighted the opportunity to boost your state pension. Speaking on ITV’s The Martin Lewis Money Show in February, he said: “Many people are missing national insurance years – maybe because you were caring for somebody or caring for a child, or you had years abroad, or you had a low income, or you had a career break.”
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