People in the UK need to act fast as they have less than six months left to address gaps in their national insurance (NI) record from 2006. This urgent move is crucial in order to maximise their state pension benefits. HM Revenue & Customs (HMRC) has disclosed that over £12.5 million in payments, spanning more than 10,000 transactions, have been facilitated through a new digital service designed to enhance state pension entitlements since its launch in April.
The digital service allows individuals to evaluate their NI record, determine if making a payment would boost their state pension, and proceed with the payment if they choose to do so. The deadline for taking advantage of this opportunity is April 5, 2025. People are encouraged to make voluntary NI contributions to fill any gaps in their record between April 6, 2006, and April 5, 2018, within the given timeframe.
After the deadline, individuals will only be able to make voluntary contributions for the previous six tax years, in accordance with regular time limitations. Recent analysis by the Department for Work and Pensions (DWP) reveals that 51% of customers topped up one year of their NI record, with the average online payment amounting to £1,193. Notably, the largest weekly State Pension increase recorded has amounted to £107.44.
Since its inception in April, 3.7 million people have utilised the online checking tool on GOV.UK to access their State Pension forecast. Customers can easily access the Check your State Pension forecast tool by logging into their online account or through the free and secure HMRC app. For those without an online HMRC account, registration can be completed on GOV.UK.
The HMRC app equips users with essential pension details at their fingertips, including their potential retirement date, annual, monthly, and weekly forecasts, along with the ability to review their NI record. It is imperative for individuals to take the necessary steps within the prescribed timeline to maximise their state pension benefits effectively.