A gap in your NI contributions can result in you receiving a lower State Pension than if you have a full record. Taxpayers with gaps in their NI records may ‘top up’ their NI by making extra Class 3 contributions.
Under normal rules, taxpayers may only go back six years to correct their NI record. But under a special concession, the Government is currently allowing taxpayers to go back to 2006-07 – but savers need to take action before 5 April.
Do I need to make top-up NICs?
To work out if your NI contributions needs topping up, check your NI record using the ‘State Pension forecast’ on the Gov.uk website.
If you are not predicted to receive the full amount, you should investigate any potential gaps and fill them if you can. People typically have NI gaps from taking time out from employment to raise children or other caring responsibilities.
You can get provide personalised advice on whether paying extra will increase your pension entitlement from the Future Pension Centre (0800 7310175).
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The benefits of topping up
Jon Greer, head of retirement policy at Quilter, said: “Recent figures from HMRC showed that more than 68,000 years of missing NI had been filled by 37,000 individuals since its digital service was launched last year, injecting £35m into their future retirement income.
“This high level of uptake reiterates the importance of this scheme as from April 2025, contributions can only be backdated by the usual six years, which could be the difference of thousands of pounds in state pension entitlement.
“Checking your eligibility ahead of the 5 April deadline will be vital for those in their late 40s, 50s and 60s. Some top ups have resulted in a weekly pension increase of as much as £113.76, equating to an annual increase of £5,915.92. This means that in some cases, paying to fill gaps now could translate into greatly improved pension income and therefore better financial wellbeing in retirement.”