HMRC issues alert as state pensioners urged to add £5,915 a year to pension

The tax office is urging Britons to check whether they can boost their by filling gaps in their records.

The check is becoming more urgent, as people only have until April to plug gaps dating back to 2006. After April 2025, people will only be able to date back six tax years to make contributions, which can cause them to lose thousands of pounds.

People accumulate NI years through active employment or by receiving National Insurance (NI) credits, which are granted during periods of unemployment, illness, or while fulfilling parental or caregiving responsibilities.

Most people will need around 35 years of contributions to receive the full new , but some may need more. Those who have gaps, which may have occurred when credits weren’t claimed, can increase their by purchasing additional NI years to fill these gaps.

HM Revenue and Customs () launched an last year to help people check their records and fill in gaps more easily. Since then, the tax authority reported that 37,000 individuals have topped up over 68,000 years, totalling £35million.

The tool has allowed some users to boost their state pensions significantly. The largest weekly increase reported was £113.76, which translates to an annual rise of around £5,915.

Angela MacDonald, ’s second permanent secretary and deputy chief executive, said: “There are just two months left to check and fill any gaps in your National Insurance record from 2006 onwards to boost your entitlement. Don’t delay – it is quick and easy to check your National Insurance record on and it could help your finances in retirement.”

More than 4.3 million people have already used the service to check their forecasts. The tool enables users to view gaps in their National Insurance records, calculate the impact of any top-up payments, and make a single payment to cover the missing years.

However, it’s important to note that while purchasing missing National Insurance years can benefit some individuals, it may not be the right choice for everyone.

Anita Wright, chartered financial planner at commented: “For those looking to maximise their , plugging gaps in their NI record can be a highly effective investment. For context, paying £907.40 for a year’s worth of contributions in 2024/25 will result in an additional £328.64 annually for life, indexed to inflation.

“In practical terms, this means that within three years of receiving , the amount invested would have been fully returned. While the alone may not be sufficient to meet all retirement needs, it is still a crucial part of a well-structured plan.”

Ross Lacey, director and independent financial adviser at added: “In our experience, it’s worth everyone looking at their projected and if it seems unlikely that they’ll have the maximum available, to do some analysis and enquire about topping up or paying for part years.

“Generally, it takes around three years of receiving your to ‘pay back’ the amount it cost to buy the extra years. Naturally, everyone is in a different situation, though, so it’s worth speaking with a financial adviser for personal advice on the best way to do this, or even if it will be needed at all.”

State pension rates 2025

rates will rise in April 2025, in line with the pledge. This means the increases each year by the highest of three measures: the previous September’s Consumer Price Index (CPI) inflation rate, wage growth from May to July of the previous year, or 2.5%.

Last year, wage growth was the highest at 4.1%, so this rate has been used to calculate the increase for April 2025. The new weekly rates for the new and basic will be:

New

• Full rate: £230.25 per week (from £221.20)

Old/Basic

• Category A or B Basic : £176.45 per week (from £169.50)
• Category B (lower) Basic – spouse or civil: £105.70 per week (from £101.55)
• Partner’s insurance: £103.30 per week (from £101.55)
• Category C or D – non-contributory: £103.30 per week (from £101.55).