‘I’m an expert – this 15-minute check could boost your state pension by £41,000’

Britons may be able to boost their state pension by as much as £41,000 by making a quick 15-minute check. To receive the “full” state pension – currently worth £221.20 a week – people must have enough “qualifying years” on their National Insurance (NI) records.

People accumulate these through active employment or by receiving NI credits, which are granted during unemployment, illness, or while fulfilling parental or caregiving responsibilities. Typically, people need around 35 NI years to get the full state pension. Those who have gaps, which may have occurred when credits weren’t claimed, can increase their state pension by purchasing additional NI years to fill these gaps.

However, it’s becoming increasingly urgent for people to check their records, as the deadline to fill gaps dating back to 2006 is approaching in April.

After April 2025, individuals can only make contributions for the previous six tax years, potentially losing thousands of pounds.

Amy Knight, personal finance expert at NerdWallet UK, said: “It takes just 15 minutes to log into the Government website to check your NI record, find out if you’re eligible to make voluntary payments to turn these into qualifying years, and complete the transaction to HMRC by card, or by using telephone or online banking.”

How much does it cost?

In most cases, Ms Knight said you’ll pay the current rate of NI when making voluntary contributions for previous years – slightly more than you would have paid at the time if rates have risen since.

She said: “If you’re making voluntary contributions for 2022-23 and 2023-24, the rates for those years apply.

“Using current rates, paying for missed years will cost you £17.45 per week that you didn’t pay NI at the time. For example, filling five years’ gaps from 2016-17 up to 2021-22 will cost you around £4,500.”

However, she pointed out: “Your future self will thank you for making this short-term sacrifice, as you could end up more than £41,000 better off over a 25-year retirement. Based on today’s rates, the difference between having the full 35 qualifying years versus just 30 is £31.60 per week, or £1,643.20 extra per year.”

For workers in their 20s and 30s, Ms Knight said filling gaps may be less of a priority, as you have enough of your working life ahead of you to stand a high chance of paying in the 35 years required to qualify for the full state pension.

On the other hand, Ms Knight suggested: “Younger people with ambitions to retire early should still consider making voluntary contributions. Doing so could potentially enable them to stop work sooner and still claim the full state pension when they reach state pension age.”

For people aged 40, 50 and older, time to accrue sufficient qualifying years may be running out. Ms Knight said: “Making voluntary contributions should, therefore, be a priority to maximise retirement income.”

There are three particular groups of people who may consider using spare cash to fill NI gaps before April 5, 2025, according to Ms Knight.

Parents who took time out of work to care for young children may have ‘missing’ or ‘partial’ years on their NI record, where they have not paid in enough NICs, risking a reduced state pension entitlement.

For example, those who waited until their child started school at age four before returning to work and did not claim Child Benefit during that time could be four years short of the 35 qualifying years needed to qualify for the full state pension.

Ms Knight said: “This shortfall could see their annual state pension income reduced by £1,310 per year based on current rates. Over a 25-year retirement, this could amount to a loss of almost £33,000 or more as the state pension increases.

“Parents who reduced their hours and worked part-time while their children were little should check whether they paid in enough NICs to make those years count.”

Contractors and the self-employed

Self-employed workers and contractors who have not paid NICs through a workplace scheme may also want to check their records, as they may find they’ll benefit from filling gaps.

Ms Knight said: “Once the new tax year begins, the six-year rule will snap back into place, making it impossible to fill gaps further back in your career.

“For those approaching retirement age, this should be a top priority for any spare savings to ensure you stand the best chance of a comfortable standard of living in retirement.”

She added: “No one wants to face the harsh reality of having missed an opportunity to increase their entitlement to state pension income they will later rely on.”

People who worked abroad or travelled

If you’ve lived or worked abroad or spent one or more years travelling, you may find your NI record is missing contributions for those years.

Ms Knight said: “Whatever the reason. If you have gaps in your NI record for the 2016-17 and 2017-18 tax years, it’s now or never. There is usually a six-year cut-off for making voluntary contributions, but the deadline was extended for those particular tax years. After April 5, 2025, this window of opportunity will close, leaving some people short on the number of qualifying years required to get the full state pension.”

“Some people may be eligible to make contributions all the way back to 2006. Logging into your personal tax account is the only way to find out which years are available for you to pay into.”

However, there are instances when making voluntary contributions may not be beneficial. For example, wealthy individuals and higher earners may have to pay back some of their state pension in income tax.

However, Ms Knight pointed out: “For working people who will rely on the state pension for essential living costs, the importance of making voluntary contributions now cannot be understated.”