THOUSANDS of Brits have been given even longer to get a payment boost of £1,000s.
The government has announced that the deadline for people to plug the gaps in their National Insurance (NI) record to boost their state pension, has been extended.
Thousands of Brits have been handed extra time to get a payment boost of £1,000sPA:Press Association
A government scheme which allows people to fill in gaps in their history was set to end in April before being extended to July.
The move was due to DWP phone lines being jammed in the run up to the initial deadline.
This has now been extended for a second time to April 5, 2025.
You might have holes in your record for various reasons, like if you took time out to raise children.
If you don’t fill in the gaps you could end up missing out on the full state pension when you retire, which at the moment is worth £203.85 a week or £10,608 a year.
It takes 35 “qualifying” years of NI contributions to get the full new state pension and at least 10 years to get anything at all.
Currently you can backfill holes from 2006 to 2016 and this scheme was due to end on July 31.
After this date, Brits would have only been able to backdate payments by up to six years but now Brits have been handed even longer to fill the holes.
HMRC has said that the revised deadline will enable “tens of thousands” more people to plug the gaps which can boost their pensions by thousands in retirement.
This scheme only applies to people who reached (or will reach) state pension age after April 5, 2016.
Those who could benefit from the scheme are being urged to apply before the deadline – and doing so could get you £55,000 over a 20-year retirement.
Laura Trott, Minister for Pensions, said: “I am pleased to see so many people taking steps to review their State Pension, which is why we have extended the deadline for customers to add extra years to their National Insurance record.
“This extension means thousands more people will have time to check their entitlement, and in many cases, increase the amount they receive when they retire.”
You can check how many years of NI payments you’ve made and see any missing years on the government website.
Steve Webb, former pensions minister and partner at consultants LCP said the extension is “hugely welcome”.
Steve said: “I am delighted that the government has announced a major extension to the deadline for paying voluntary NI to top up state pensions.
“This is a complex area with great potential for people to improve their position but also the risk that they may get things wrong.
“It is essential that people can talk through their options with the DWP before making any payments, and this has simply been impossible for too many people because of lack of phone capacity.”
He added that the extension is an opportunity for more people to be trained up to handle the large volume of calls.
How to top up National Insurance contributions and how much you can get
In some cases, buying back missing years can be really valuable.
But, earning back the years isn’t free so your voluntary contributions do come at a price.
If you’re filling gaps between 2006/07 to 2015/16 you’ll be paying the 2022/23 rates for contributions.
It works out to be worth £15.85 a week which means it costs £824.20 to buy one year of contributions.
As the state pension was £185.15 per week in 2022/23, this boost would add £5.29 per week or around £275 per year.
Although you’d have to pay £8,242 (10 lots of £824.20), the annual state pension boost would be around £2,750.
Someone who was retired for 20 years would get back around £55,000 in total (before tax).
Anyone who tops-up their record after April 2025 will pay those rates.
Though before making voluntary contributions, you need to get a pension forecast and speak to the Government’s Future Pension Centre.
This is because there are some situations in which paying historic contributions wouldn’t boost your state pension.
You can check the full list of who’s eligible for claiming credits on the government website.
It explains the circumstances where you’ll need to claim and when you’ll get it automatically.
Meanwhile, here are four of the best ways to boost your retirement pot and two to avoid.
Here’s the full list of reasons you might have gaps in your record and risk missing out on the full payment.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]