HM Revenue and Customs (HMRC) has issued a crucial six-month warning for thousands of Britons to boost their state pension entitlement.
The deadline for maximising state pensions through voluntary National Insurance contributions is April 5, 2025, with 10,000 payments being made to benefit peoples’ retirement.
This opportunity allows individuals to fill gaps in their National Insurance record between 6 April 2006 and 5 April 2018.
After the deadline, people will only be able to make voluntary contributions for the previous six tax years, in line with normal time limits.
The Department for Work and Pensions (DWP) and HMRC are urging the public to act promptly and utilise the ‘Check your State Pension forecast’ tool on GOV.UK to assess potential increases in their retirement income.
The process involves checking one’s National Insurance record for any gaps that could prevent claiming the full state pension.
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HMRC is urging Britons to take action
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Most people need 35 qualifying years to receive the full new state pension, and 10 years to get anything at all.
Currently, individuals can buy back missing National Insurance years dating back to 2006. It costs £824 to purchase a full missing year, which adds £328 annually to the pre-tax state pension.
HMRC’s new digital service to help people purchase National Insurance contributions.
More than 10,000 payments worth £12.5million have been made through this service since its launch in April 2024. The majority of customers (51 per cent) topped up one year of their NI record, with the average online payment being £1,193.
The ‘Check your State Pension forecast’ tool on GOV.UK has been used by 3.7 million people since April to view their pension forecast.
This online service enables individuals to check for gaps in their National Insurance record, calculate if making a payment would increase their State Pension, and make a payment if desired.
The largest weekly State Pension increase achieved through this service is £107.44. Users can access the tool by logging into their online HMRC account or via the free and secure HMRC app.
Those without an online HMRC account can easily register on GOV.UK. The HMRC app allows users to view their pension details, including their current potential retirement date and annual, monthly, and weekly forecasts, as well as check their NI record.
Emma Reynolds, Minister for Pensions, 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.”
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Some individuals may be eligible for free National Insurance credits, such as those claiming statutory sick pay or benefits like Jobseeker’s Allowance and Employment and Support Allowance.
HMRC advises caution when using their online services. Users should never share their HMRC login details with anyone to avoid falling victim to scams.
For those seeking additional guidance, the Future Pension Centre can be contacted on 0800 731 0175 to check if plugging gaps in National Insurance records would be beneficial.
Individuals already at state pension age should contact the Pension Service helpline on 0800 731 0469.
