Last orders to meet deadline to improve your state pension

NI gaps

While you can normally fill in gaps in your NI record for the previous six years, there’s a one-off opportunity to do so for as far back as April 2006. The deadline for this is 5 April 2025.

Why gaps matter

To qualify for any state pension at all you need at least ten full qualifying years of NI contributions and 35 years for the maximum (currently £221.20 per week). If your NI record falls short, the pension you receive will be lower than it could be which could leave you thousands of pounds worse off in retirement. Even a short gap in your NI record, say as a result of a week’s break between jobs, can mean a non-qualifying year.

If you paid contracted out NI contributions before 2016, contact HMRC about the effect of topping up your NI record as the effect on your pension can differ compared to those who paid contracted in contributions.

Checking for gaps

To check if you are on track for the full state pension you can easily obtain a state pension forecast. If this doesn’t showing the maximum of £221.20 per week (at 2024/25 rates), check your NI record to see why.

The forecast assumes you will work until state pension age. Therefore, if you permanently cease work earlier, say for health reasons or to live abroad, the full state pension won’t necessarily be payable. Contact HMRC for more information about your pension entitlement.

Fill the gaps for free

Before paying to top up your record it’s worth seeing if any of the gaps might qualify for a backdated claim for NI credits, e.g. when you weren’t working due to caring responsibilities, being ill or unemployed.

What will it cost?

After you’ve ensured all NI credits have been claimed, any further historic gaps can be filled by paying voluntary contributions. This can be done online. You’ll need an 18-digit reference number for this. Contact HMRC if you don’t have one. Voluntary NI contributions are payable at one of two rates: Class 3 at £15.85 for each week of gap in your record; or Class 2 at £3.15 if you were self-employed during a gap period. It will cost you less to top up years for which you already have some NI credits rather than those that have none.

Is it worth it?

Paying voluntary NI, which is usually non-refundable, won’t always increase your state pension. This is especially the case for pension credit recipients who might end up worse off. Each extra qualifying year up to the 35-year maximum adds £328  (at the current rate) to your state pension annually. That means the cost of a full year’s worth of Class 3 NI contributions would be recouped in two and a half years from when you start receiving your pension.