4 February 2025
If you are covering the news that £35 million has been added to State Pension pots by people who have filled gaps in their National Insurance records, please see the following comment from Rosie Hooper, chartered financial planner at Quilter Cheviot:
"The latest figures from HMRC reveal just how many people have seized the opportunity to boost their State Pension by topping up missing National Insurance contributions. Since the digital service launched last April, over 37,000 individuals have contributed to more than 68,000 years of missing NI, injecting £35 million into their future retirement income. With the deadline fast approaching on 5 April, anyone who has gaps in their record should seriously consider whether making voluntary contributions could be a valuable investment.
"The scale of uptake highlights the importance of this scheme, particularly given that from April 2025, individuals will only be able to backdate contributions by the usual six years. This means that many people who might otherwise miss out on thousands of pounds in State Pension entitlement have only a short window left to take action. The fact that 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, underlines just how beneficial this can be.
"For those with gaps in their record—especially people in their late 40s, 50s, and 60s—checking eligibility should be a priority. The average online top-up payment is £1,835, so paying a relatively small price now could have a substantial impact on your financial wellbeing in retirement. In some cases, a few thousand pounds paid now could translate into tens of thousands in additional pension income over retirement, making it one of the most financially rewarding decisions they can make.
"However, it’s crucial to ensure that paying voluntary contributions will actually lead to a higher State Pension. Before making a payment, you should check your NI record using the ‘State Pension forecast’ on the gov.uk website to understand your current state pension entitlement. If you find that you are not predicted to receive the full mount, you should investigate any potential gaps and fill them if you can. Not everyone will benefit from paying voluntary contributions, so it's vital to also contact the Future Pension Centre on 0800 7310175. They can provide personalised advice on whether paying extra will increase your state pension entitlement. It might turn out to be one of the most beneficial calls you make in planning for your retirement."
