The end of the financial year is edging closer which means time is running out for people to buy credits to plug any gaps in their National Insurance (NI) record for any missed years of contributions. To get the full New State Pension in retirement, you need 35 years’ worth of NI contributions and to receive any payment from it at all, you need at least 10 years.
Buying back missed years can be a good way to boost retirement income as the full New State Pension will be worth up to £10,600.20 over the 2023/24 financial year - paid every four weeks at £203.85. Buying just one qualifying year of NI at the standard rate of £824.20 adds up to £275 per year - 1/35 of the full rate of the State Pension - to your pre-tax State Pension.
The breakeven point of making those contributions is three years after you start claiming your State Pension, so it’s a worthwhile investment for the many years of retirement to come - if you can afford to do so.
