Gaps in national insurance for state pension

What’s the fuss about gaps in national insurance for state pension?

The government has announced that taxpayers now have an additional period of nearly 2 years, until 5 April 2025, to rectify gaps in their National Insurance record for state pension starting from April 2006. This extension allows individuals more time to thoroughly evaluate the option of making voluntary contributions and ensures that no one will miss the opportunity to enhance their State Pension entitlements.

Previously extended to 31 July 2023, the original deadline has already prompted tens of thousands of individuals to make voluntary contributions to HM Revenue and Customs (HMRC) in relation to gaps in national insurance for state pension. With the revised deadline in place, it is anticipated that tens of thousands more will take advantage of this opportunity.

What does the recent extension mean for my state pension?

This means men born after 5 April 1951, or women born after 5 April 1953, have more time to check their records, decide whether to pay voluntary contributions to make up for gaps in their National Insurance record for state pension and can afford to do so if they choose.

The extension means that taxpayers have a longer period to enable them to afford to fill any gaps if they choose to do so. All relevant voluntary National Insurance contributions payments will be accepted at the rates applicable in 2022 to 2023 until 5 April 2025.

Individuals who are planning for their retirement could benefit from the opportunity to complete gaps in their National Insurance record. Other people who may benefit include those who may have been:

• employed but with low earnings
• unemployed and not claiming benefits
• self-employed who did not pay contributions because of small profits
• living or working outside of the UK

Paying voluntary contributions does not always increase your State Pension. Before starting the process, eligible individuals with gaps in their National Insurance record from April 2006 onwards should check whether they would benefit from filling those gaps.

Victoria Atkins, Financial Secretary to the Treasury, said:

“People who have worked hard all their lives deserve to receive their State Pension entitlement, and filling gaps in National Insurance records can make a real difference.

With the deadline extended, there is no immediate rush for people to complete gaps in their record and they will have more time to spread the cost.”

Laura Trott, Minister for Pensions, Department for Work and Pensions, said:

“I am pleased to see so many people taking steps to review their State Pension, which is why we have extended the deadline for customers to add extra years to their National Insurance record.

This extension means thousands more people will have time to check their entitlement, and in many cases increase the amount they receive when they retire.”

Useful links for your State Pension

Click here for State pension forecast

Click here for Voluntary National Insurance Contribution

Click here to find out how to make voluntary National Insurance (Class 3)

Click here to check your National Insurance record