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HMRC has urged workers to act soon to top up their state pension as the deadline to secure the full amount grows closer. In less than six months, people will no longer be able to fill gaps in their national insurance records to maximise their pot.
The government put the deadline in place to ensure that those who could be affected by the new state pension transitional arrangements have time to secure the full amount. It covers the years between 6 April 2006 and 5 April 2018, while people can continue to always fill in gaps over the last six years.
It will expire on 5 April 2025, having been extended twice before. HMRC says more than 10,000 payments worth £12.5 million have been made through their new digital service, which launched in April 2024.
To qualify for the full new state pension amount, most people will need 35 full national insurance years. ‘Buying’ one of these costs £824, but will secure much more than this in the long run.
Each year filled will lead to an extra £328 a year in state pension pre-tax – meaning the investment will pay for itself in less than three years. For someone who lives for 20 years beyond retirement age, currently 66, the investment will be worth more than eight times the original amount.
In some cases, people may only need to top up a year slightly to fill it, with some cases being just £10 short. Paying this small amount of money can boost yearly retirement age income for some by hundreds of pounds.
Importantly, the maximum state pension amount is currently £221.20 a week, so those set to receive this amount won’t need to take action.
Money expert Martin Lewis, who has long worked to raise awareness of the issue, says he has seen people gain tens of thousands of pounds from filling in their national insurance years.
The Money Saving Expert founder said: “Boosting your state pension by back-claiming or buying missing national Insurance years is one of the single most lucrative things you can do.”
However, he has criticised the HMRC’s capability to handle claims in the run-up to the deadline, adding: “It’s frustrating that HMRC now says its streamlined online process won’t be available to everyone in time for the likely rush ahead of the 5 April deadline.”
“Huge demand meant phone lines were clogged in the run-up to previous deadlines – so much so that the original April 2023 cut-off date was pushed back twice to stop people missing out – and it’s that same deadline that now approaches.”
Finding out your eligibility and making a claim isn’t always the most straightforward, so Money Saving Expert has offered a handy guide for those who believe they could benefit.
Minister for pensions Emma Reynolds said: “We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement.
“That’s why I urge everyone to check if they could benefit by filling gaps before the deadline passes. Using our online tool means only a few clicks could make a huge difference to your future.”
You can check your National Insurance record to see if any top-ups are needed here.
