If you are eligible for a UK state pension, now is the time to check that your national insurance contributions (NI) are up to date.
NI contributions are typically paid from employed and self-employed income and, if eligible, NI credits.
Usually, anyone retiring on or after 6 April 2016 must have 35 qualifying years of NI contributions in order to claim the full state pension. At least 10 years of contributions enable a person to be eligible for part payment of the ‘new state pension’. For those whose NI record started before 6 April 2016, different rules may apply; the number of required years of NI contributions/credits to obtain the full state pension may be higher.
If you have insufficient contributions, voluntary payments can be made to restore your full pension entitlement, plugging gaps as far back as 2006.
Do you have gaps in your NI contributions?
It’s time to act!
From 6 April 2023, the timeframe for making voluntary contributions is six years. This means that in the 2023/24 tax year, it will be possible to make contributions going back to the 2017/18 tax year only.
“Making the most of the current opportunity may make a big difference to the level of your state pension,” says Felicity Reader, Accounts Senior of re:accounts in Stevenage. “It’s something that we urge everyone to look into before it’s too late.”
Your NI Payment History
It’s important that everyone checks their NI records to identify any shortfalls as these may impact their state pension amount.
Do you think you’ll have insufficient NI contributions by retirement age?
You have the opportunity to plug gaps with voluntary payments, thereby protecting your level of state pension.
This is crucial if you have gaps dated before the 2017/2018 tax year as the opportunity to cover these years closes from 6 April 2023.
You can check your NI contribution history here.
You need a Government Gateway user ID and password to check your National Insurance record. If you do not have a user ID, you can create one before you check your record. (This will give you access to your HMRC tax account as well as your NI contribution history.)
Next Steps
- Spot any gaps in your NI payment history
- Identify if these gaps are correct, or if NI credits (such as via universal credits) are missing
- Contact HMRC to resolve possible errors
- Identify contribution shortfalls
- Decide upon any voluntary contributions
Specific financial advice is recommended when deciding if top-up payments are the right course of action. (The re:accounts team knows a fantastic financial adviser if you would like to talk to an expert.)
