If heading for a state pension shortfall buying more can be a great deal (Image: Getty)
Time is running out for people who want to top up their by making voluntary National Insurance (NI) contributions. An extended government deadline expires in six months.
The deadline was pushed from July 31 to April 5, 2025, after more than half a million callers swamped headlines with questions seeking information on how to buy extra . It’s unlikely to be extended again.
Everyone needs 35 years of qualifying NI contributions to get the full new , introduced for those retiring from April 5, 2016. You need 10 years to get anything at all.
Most will do this automatically from taxation on their earnings or by claiming NI credits.
Yet many end up with gaps and receive below the maximum .
Currently, they can plug gaps by making voluntary NI contributions all the way back to April 2006, but only if they act before April’s deadline.
Once the deadline closes you can still make voluntary NI contributions, but only to plug gaps in the previous six years.
Andrew Tully, technical services director at Nucleus Financial, said the extended deadline is a great opportunity for some but warns buying extra is a complex process and it can be difficult to work out whether you will benefit.
“It is essential that you talk through your options with the before making any payments, but brace yourself for long waiting times.”
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Filling gaps could potentially boost your by thousands of pounds and this should rise each year with the , so is well worth considering, Tully said. “You only need to live around three years after age to get your money back. After that you’re in profit.”
It costs £907.40 to plug one year’s gap in the current tax year, which buys additional of £303 a year. You may pay less for earlier years.
If you live for 20 years after claiming your , that £907.40 would have bought you £6,060 extra in pension in total.
So each £1 you spend buys you £6.68 of .
In practice it will be even more as these figures don’t include the value of increases over that time.
Tully warned that paying voluntary NI contributions will be wasted money if you’re on course to get the maximum new anyway.
You won’t get extra by building more than 35 years of NI.
Anyone who retires from April 6, 2016, who thinks they may have NI gaps should start by checking their forecast, said Stephen Lowe, group communications director at retirement specialists Just Group. “This will set out how much you have already built up and what you will get at age.”
You can do this online at Gov.uk/check-state-pension, by filling in a BR19 form and posting it, or by calling the Future Pension Centre on 0800 731 0175.
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It is worth getting hold of your NI record to look for gaps, available online at Gov.uk for those with a Government Gateway account or by calling on 0300 200 3500.
If you spot gaps, ring the Future Pension Centre on 0800 731 0175.
Before voluntarily buying more , you must first check whether you are due free NI credits. These are paid automatically for periods when people were unemployed, receiving certain state benefits or caring for relatives, Lowe said. “NI credits won’t cost you a penny.”
If you think you could benefit from making voluntary contributions, there is no time to lose. Any claims put in before the deadline will be logged and remain valid however long the whole process takes.
Paying voluntary NI works best for those in good health, who are likely to live longer and earn more extra than those with health issues and lower life expectancy.
If you retired before April 6, 2016, on the basic , it is now too late to buy extra .