7 October 2024
If you are covering the DWP announcement that 10,000 people have boosted their State Pension by filling in gaps in their NI record with online payments, please see the following comment from Kirsty Anderson retirement specialist at Quilter:
"The government’s new data shows the significant uptake of its new digital service, with over 10,000 payments totalling £12.5 million made since the service launched in April 2024. The service has been used by 3.7 million individuals to check their State Pension forecast, showing that the concerted campaign from the industry to highlight this opportunity has been seized with both hands by the public. It also illustrates that the government’s decision to extend the deadline was wise.
"For individuals with multiple gaps in their NI records, the potential long-term benefits are significant. Someone with ten years to make up could pay just over £8,000 to receive an estimated additional £55,000 in pension income over a 20-year retirement. Even topping up a single year would be recouped within a few years of retirement.
"The government’s data shows that just over half of users (51%) topped up a single year, indicating that many are using the service for small, targeted adjustments to their NI record. This reflects a growing awareness of the importance of plugging minor gaps to ensure full State Pension eligibility.
"However, topping up is not universally beneficial, and it’s essential for individuals to carefully consider their personal circumstances. While HMRC has made the process more accessible, people should still seek tailored advice by contacting the Future Pension Centre to confirm that making voluntary contributions will yield the expected benefits.
"Ultimately, while the new service represents a significant step forward in accessibility, individuals must make informed decisions to ensure these payments enhance their retirement income effectively."
