For thousands of people, it could be the most lucrative thing you could do to boost your state pension and help you enjoy a much more comfortable retirement.
But the deadline to buy back missing National Insurance years is rapidly approaching, with just weeks left for anyone wanting to boost their pension to act. With so many people getting in touch with the DWP looking to increase their pension payouts, the government has confirmed it is introducing an ‘online callback request form’ for those who can’t get through in time for the April 5 deadline.
The state pension is not automatically paid at the maximum rate – which is currently about £220 a week for someone on the full new state pension. Instead, your eligibility for pension payouts is based on the number of ‘qualifying years’ on your national insurance records. You need about 35 full years of National Insurance payments – i.e., paying the tax through working full time – in order to qualify for the full pension amount possible.
Those who started working later in life, took a career break, left the UK, were ill, or did not work enough hours, in any given years may find they are short of the 35 years needed.
Those people can buy back missing National Insurance years in their records. It costs about £800 to buy a full year, but this can add thousands of pounds to your pension thanks to boosting your payments.
If you bought one year back, it would cost £824 but add £302 a year to your pension payouts, says financial experts Shipleys LLP.
But in April 2025, 13 years you can currently buy back will be closed off, so this is your last chance to buy those back.
If you did this for all 13 years, and then lived another 20 years, you would be paid £78,520 more in your pension than if you missed the deadline.
“For those who may have missing NI years between 2006 and 2016 there is a time limit to plug any gaps. This is particularly important for older individuals who may not have the opportunity to plug any gaps naturally by future working.
“From 6 April 2025, the number of extra years you can purchase reduces to just the last six tax years.
“Until 5 April 2025, the cost of buying voluntary NI contributions is around £824 per missing year (although 2020/21 and 2021/22 are slightly less). Buying a NI year at £824 adds up to £302 per year (£5.82 per week) to your pre-tax state pension.
“From 6 April 2025, the cost to buy a missing year is £923.00. Remember, also from that point, people won’t be able to make voluntary NI contributions for the years before 2019/20.”
According to Martin Lewis’ MSE, this is particularly important for anyone aged between about 43 and 70.
They said: “There is a potentially unbeatable opportunity everyone aged 40 to 73(ish) needs to consider. You’ve got until 5 April 2025 to buy back any missing National Insurance years from 2006 to 2016.
“This can be prove very lucrative, as some are on course to make over £50,000 in boosts to their State Pension by following this guide.”
If you’re not currently a pensioner, you can call the DWP’s Future Pension Centre to apply. If already a pensioner, contact the Pension Service.
If you request a callback from the DWP with its online form, the DWP will respond within eight weeks. As long as contact is made before April 5, 2025, you can still buy back missing years all the way back to April 2006.
