Plugging your pension gap
The launch of an online payments service has made it easier for people to check for and fill any gaps in their National Insurance (NI) record to help increase their State Pension.
The recently launched Check your State Pension forecast is a joint service by HM Revenue and Customs (HMRC) and the Department for Work and Pensions (DWP).
It shows people by how much their State Pension could increase and details of the voluntary NI contributions they would need to pay to achieve this.
It allows most people under State Pension age to view gaps in their NI record and pay voluntary contributions to fill those gaps, if it will benefit them.
Anyone with NI gaps in some of their tax years that could increase their State Pension if filled, can use the new digital service to choose which years they would like to pay to fill.
They can then pay securely through the service and will receive confirmation that their payment has been received and that their NI record will be updated.
Customers can access the Check your State Pension forecast via GOV.UK or via the HMRC app.
Those who are eligible have until April 5, 2025 to pay voluntary contributions to make up gaps in their NI record between April 6 2006 and April 5 2018.
From April 6 2025, people will only be able to pay voluntary contributions for the previous six tax years, in line with normal time limits.
The deadline to pay voluntary contributions was extended last year for those affected by new State Pension transitional arrangements.
It means that people now have more time to properly consider whether paying voluntary contributions is right for them and ensures no-one need miss out on the possibility of increasing their State Pension.
Paying voluntary contributions will not always increase their State Pension but everyone can use the new service to check whether they could be better off in retirement before making any voluntary NI payments.
People will need to login to the new digital service using their Personal Tax Account login details. Those without an online HMRC account can register on GOV.UK.
