State pension warning as savers urged to act with move making ‘huge difference to future’ | Personal Finance | Finance
Savers have less than six months to plug any gaps in their National Insurance records to boost their state pension, HM Revenue and Customs (HMRC) warns.
Under the new state pension rules, people’s payment rates depend on how many National Insurance (N) years they’ve accumulated. NI years are gained through working or receiving credits, which are gained through claiming benefits for various reasons or caring for a child.
People need roughly 35 years of NI contributions to qualify for the full rate of the new state pension, which is worth £11,502.40 a year at present.
HMRC is urging people to use its online service to check their state pension forecast, as people only have until April 5, 2025, to make voluntary contributions to fill gaps dating back to 2006.
After this date, people will only be able to make voluntary contributions for the previous six tax years.
The service enables people to check if they have gaps in their NI record, calculate if making a payment would increase their state pension, and then make a payment if they wish to do so.
More than 10,000 payments worth £12.5million have been made through HMRC’s digital service since it launched in April 2024.
Emma Reynolds, minister for pensions, said: “We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement.
“That’s why I urge everyone to check if they could benefit by filling gaps before the deadline passes. Using our online tool means only a few clicks could make a huge difference to your future.”
Customers can use the state pension forecast tool by logging into their online account or via the free and secure HMRC app. Those without an online HMRC account can register on GOV.UK.
HMRC app users will be able to see their pension details, including their current potential retirement date as well as annual, monthly and weekly forecasts. They can also check their NI record.
However, HMRC warns people should “never” share their HMRC login details with anyone as the risk of scams rise. HMRC scams advice is available on GOV.UK.
