£35m added to state pension pots since April last year by people plugging gaps
People have just two months left to boost their state pension entitlements going back as far as 2006 by filling gaps in national insurance records.
People plugging gaps in their national insurance (NI) records to boost their state pension entitlements have contributed a total of £35 million since April last year using an online service from HM Revenue and Customs (HMRC).
HMRC and the Department for Work and Pensions (DWP) are reminding people that they have only two months left, until April 5, to check their NI record and fill any gaps stretching as far back as April 6 2006.
From April 6 2025, people will only be able to make voluntary NI contributions for the previous six tax years, in line with normal time limits.
Since the launch of the digital service last April, 37,000 people have topped up more than 68,000 years of state pension.
HMRC said analysis of the digital service found two-thirds (65%) of the years topped up so far are from 2017 onwards and the average online top-up payment made is £1,835.
The biggest weekly state pension increase made has been £113.76.
HMRC said the “check your state pension forecast” service on gov.uk is the fastest and easiest way people can check what their pension will be in retirement and take action if they need to.
People can also use the HMRC app to check their state pension forecast.
In general, people need to build up 35 years of NI contributions to get the full new state pension.
People may also be able to receive credits if they are not paying NI and they can check whether they are entitled to do so at www.gov.uk/national-insurance-credits/eligibility.
Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive, said: “There are just two months left to check and fill any gaps in your national insurance record from 2006 onwards to boost your state pension entitlement.
“Don’t delay – it is quick and easy to check your national insurance record on gov.uk and it could help your finances in retirement.”
People should also watch out for scammers posing as the revenue body and should never share their HMRC login details with anyone.
Rosie Hooper, a chartered financial planner at Quilter Cheviot said: “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.”
Sir Steve Webb, a former pensions minister who is now a partner at pension consultants LCP (Lane Clark & Peacock) said: “For most people who are short of a full state pension, top-ups are generally excellent value for money, with the cost being recovered within three to four years of retiring.
“This is likely to be the last opportunity to fill gaps more than six years back, so it is worth everyone checking their pension forecast and seeing if a top-up would be worthwhile.”
