Maximising Your UK State Pension: How to Make Up Missing National Insurance Years
Recent Posts
For everyone aged 40 to 73, there’s a potentially unbeatable opportunity to consider. Until 5 April 2025, you can buy back any missing National Insurance years from 2006 to 2016. This can significantly boost your state pension, with some individuals on track to increase their retirement funds by over £50,000 by following this guide.
Might you be able to turn £800 into £5,500 in your state pension?
Under 40?
Even though it’s less urgent for you, we here at Advice Rooms recommend checking if topping up your National Insurance record is beneficial. You might find a partial year that’s worth buying.
Are You Aged 70-73+?
This is particularly relevant for men born after 5 April 1951 and women born after 5 April 1953. If you were born earlier, you’re on the old state pension, which doesn’t apply to you.
Why National Insurance Years Matter
The full ‘new’ state pension is currently £221.20 a week. The amount you receive depends on how many complete National Insurance (NI) years you have. Generally, you need around 35 full NI years to get the maximum state pension, though some may need more, depending on their age and NI record.
Act Fast: The deadline is 5 April 2025
Usually, you can only buy back up to six years, but due to transitional arrangements when the ‘new’ state pension was introduced, you can fill gaps back to 2006. Due to high demand, this was initially set to end on 5 April 2023, then extended to 31 July 2023, and now to 5 April 2025.
Step-by-Step Guide
Step 1:
A. Check your National Insurance record:
Log into your account to view your full NI record by using the following link:
https://www.gov.uk/check-national-insurance-record
B. Get your state pension forecast:
Use the Government’s state pension forecast calculator to see how much pension you’re likely to get based on your current record.
Step 2: Plug Gaps with NI Credits, if Possible
Check if you can get NI credits for periods when you weren’t working but were in situations like caring for a child, being on statutory sick pay, or receiving a jobseeker’s allowance. Full information is available on the Government’s national insurance credits page.
Step 4: Evaluate If You Should Pay to Boost Your State Pension
Consider paying to top up if:
- Your state pension forecast is less than £221.20 a week.
- You can not plug gaps through NI credits.
- You’re near state pension age and unlikely to earn more qualifying years.
Step 5: Calculate the Potential Benefits
A full NI year usually costs £824 and adds up to £328 to your annual pre-tax state pension. Use a calculator to see the potential gains and check life expectancy tables to ensure you’ll benefit long enough.
Work out an employee’s national insurance contributions by using the Gov link provided.
And, our team are here if you need assistance. Contact us today!
