How to boost your State Pension before crucial April deadline

Important information - the value of investments and the income from them can go down as well as up, so you may get back less than you invest.

A crucial deadline is looming to fill gaps in your National Insurance record and boost your State Pension income.

Until 5th April, you can make voluntary National Insurance contributions to plug any gaps in your record between 2006 to 2018. But from 6th April, you will only be able to fill any gaps for the last six tax years as normal rules resume.

Filling in missing years in your National Insurance (NI) record is hugely valuable because receiving a full State Pension isn’t guaranteed. It usually requires 35 years of National Insurance contributions.

So, how do voluntary NI contributions work, and why is this temporary rule change so valuable?

• Read: Triple Lock: what will the State Pension be in the future?

Why is plugging gaps important?

Despite the rise of private pension wealth, the state pension will still form a large portion of most people's retirement income. So, taking steps to get the most State Pension income possible is vital.

Making voluntary NI contributions gives you the chance to buy additional “qualifying years” to fill any gaps in your NI record. And that’s important because your final income depends on your National Insurance contributions.

You need 35 "qualifying years" in your National Insurance record to guarantee the full State Pension income. And if you have gaps, it could lead to a reduced annual income.

The full State Pension will rise to £11,973 in April, but each missing year will potentially reduce your income by £342, and an individual with only 20 qualifying years would receive just £6,842 annually instead of the full State Pension.

Buying one additional year costs £907 and can boost your annual State Pension income by £342 every year in retirement. This means you could recover your initial outlay in just three years. And over 20 years, you could be looking at an additional £6,842 in State Pension income.

• Get expert insights straight to your inbox with our free investor emails

What’s the deadline?

It’s important to act now, as the crucial window that allows taxpayers to plug gaps in their NI records between the 2006/07 and 2018/19 tax years is soon closing.

Initially due to expire in April 2023, the deadline has been extended to 5 April 2025 due to high demand from taxpayers seeking to take advantage of this offer.

However, starting from 6th April 2025, you will only be able to fill gaps in your NI record for tax years from the 2019/20 tax year onward.

Here are more details about how to pay Voluntary National Insurance contributions.

Because of the scale of demand, there will now be some leeway for anyone who struggles to get through on the phone.

The Department for Work and Pensions has confirmed that people who use the online call-back request tool before 5 April will still be able to make voluntary contributions after the 5 April deadline. Take a screenshot of your callback confirmation message as proof.

How much could you boost your State Pension?

If you have holes in your NI record, making voluntary contributions could prove exceptional value. The additional income you receive usually far exceeds the cost of voluntary contributions.

Purchasing an additional qualifying year for £907 can boost your annual State Pension income by £342 each year, adding up to £3,421 over ten years.

It’s an even better deal for self-employed workers who have a lower rate of voluntary NI contributions. They can buy an extra year of contributions for just £179.

Someone with significant gaps who buys 18 years’ worth of qualifying years, the current maximum, could add £6,158 extra State Pension income per year and £123,151 over 20 years in retirement.

This table shows the enormous potential impact of voluntary contributions.

Bear in mind that these figures don't account for inflation. In reality, the total increase in income would be even bigger, as the State Pension is adjusted annually in line with the Triple Lock, ensuring your income keeps pace with inflation.

Why might you have gaps?

It’s common to have gaps in your National Insurance record, if you've taken a career break or had time off due to ill health. However, several other factors can lead to missing years in your National Insurance record, such as:

• Having time out of the workplace and not claiming benefits.
• Having low earnings and not paying enough National Insurance to count as a qualifying year.
• Being self-employed and not paying NI due to low profits.
• Living or working outside the UK. 

Is it always worth it?

A word of warning here is that topping up your contributions could be a waste of money for some people. The decision hinges on whether you still have time to reach the magic 35 years of NI contributions.

If retirement is a long way off, you could still reach 35 years’ worth of contributions without buying any additional years.

You can check the government’s “Check your State Pension forecast” page to see what gaps you have and if you’re eligible for voluntary contributions for those years.

It’s also worth pointing out that you can get additional qualifying years in other ways apart from working. Receiving child benefit for a child under 12, receiving carers allowance and getting certain benefits like job-seekers allowance and Employment and Support Allowance will also give you extra qualifying years in the form of NI credits.

Check for any missing NI credits on your record to see if you might get extra years for free. Mistakes do happen - for instance, some people didn’t get NI credits they were due under the home responsibilities protection scheme between April 1978 and April 2010.

If you’re nearing retirement or are already retired, it’s easier to know if topping up makes sense, as time is running out to plug any gaps. The chance to fill gaps as far back as 2006 could make a huge difference to your state pension income.

When can’t I pay voluntary NI contributions?

There are a few circumstances when you can’t pay voluntary NI contributions, including the following:

• Older people - Making voluntary contributions for more than the past six years is only possible for men born after 5th April 1951 and women born after 5th April 1953.
• “Contracting out” - You can’t plug NI gaps for years when you paid into a “contracted out” pension scheme. This type of pension scheme was where employers and pension savers opted out of the State Pension in exchange for lower NI contributions but a higher workplace pension in exchange.
• Reduced rate NI - Married women or widows paying reduced rate National Insurance also can’t fill in gaps for years where this applied.
• Living abroad - you need to have either previously lived in the UK for three years in a row or paid at least three years of National Insurance contributions to be eligible.

Checking your National Insurance record will show up years where you have gaps and which years might be eligible for you to pay a voluntary NI contribution.

There’s also a government service that can help if you’re not sure if it is worth topping up. Contact the government’s Future Pension Centre to discuss your decision.

• Read: The tax hacks to help you keep more of your money
• Read: Retirement plan checklist: 5 years from retirement
• Read: 4 retirement super trends for the decade ahead