Brits have until April 5 to potentially increase their state pension by hundreds, by updating their National Insurance record as far back as 2006. However, this deadline has led to a surge of people attempting to top up their records, resulting in a backlog on the DWP helpline.
To avoid people missing the deadline through no fault of their own, the department is easing the deadline for some individuals. People who use the Gov.uk website to request an online callback from HMRC don’t need to worry about completing the process before the deadline.
As long as this request is submitted before April 5, they should be able to update their National Insurance record whenever HMRC returns their call, even if this is after the deadline.
The Gov.uk site reassures: “If you submit a request by the 5 April 2025 deadline, you will still be able to pay voluntary National Insurance contributions after the deadline has passed. If you have already requested a call back, please do not send another request.”
Once you’ve submitted your request, the Department for Work and Pensions (DWP) will get back to you on the number you provided when they have availability. According to Money Week, this is typically within eight weeks of submitting a request.
After sending in your request, there’s no need to attempt further contact with DWP or HMRC, however, HMRC does recommend taking a screenshot of the confirmation message that appears when you submit your request.
People who have a gap in their National Insurance record, perhaps due to unemployment, caring responsibilities or low income without claiming National Insurance credits, can fill these gaps with voluntary contributions. Until April 5, payments can be backdated from 2006 to this year.
After this deadline, savers will only be able to fill gaps dating back the last six tax years. Your National Insurance record determines your state pension entitlement and to receive the full new state pension amount, you need a minimum of 35 qualifying years.
A qualifying year refers to one full year’s worth of National Insurance contributions you have paid or credits you received. This makes the April deadline particularly crucial for those nearing retirement. For instance, if you worked and paid National Insurance from 1990-2006 but then took a career break and only resumed work in 2015, you would only have around 26 qualifying years by 2025.
If you fail to top-up your record or request a callback before April 5 to address the 2006-2015 gap, you’ll need to work an additional nine years to qualify for the full state pension. However, if you reach the state pension age before this, you won’t be able to fill the gap based on your employment as you will no longer be contributing to National Insurance.
Each year of voluntary contributions can boost your state pension by £328.64 annually. This amount accumulates over time, so if you purchase a full year and live 20 years beyond the state pension age, you will have gained an extra £6,500 in state pension for the cost of £907.40.
You can verify your state pension forecast and National Insurance record on the Gov.uk website to determine if you require a top-up. Additional information is also accessible on the Gov.uk site.
