Tuesday, March 7, 2023
HomeFinancial PlanningPension savers win more time to top up NI contribs

Pension savers win more time to top up NI contribs

Pension savers have won more time to make voluntary National Insurance contributions to fill gaps in their National Insurance records and boost their State Pensions.

The deadline to top up missing NI contributions has been extended from 5 April to 31 July.

The government says the move will give thousands of taxpayers more time to fill gaps in their National Insurance records.

The changes come after some pension savers voiced concern about the short time until the April deadline. The deadline extension was announced via a Written Ministerial Statement today.

HMRC has urged taxpayers to find out more to ensure they do not miss out.

People with gaps in their National Insurance record from April 2006 onwards will have more time to decide whether to fill any gaps to boost their new State Pension. Any payments made before 31 July will be at the lower 2022 to 2023 tax year rates.

As part of transitional arrangements to the new State Pension, taxpayers have been able to make voluntary contributions to cover incomplete years in their National Insurance record between April 2006 and April 2016.

Victoria Atkins, Financial Secretary to the Treasury, said: “We’ve listened to concerned members of the public and have acted. We recognise how important State Pensions are for retired individuals, which is why we are giving people more time to fill any gaps in their National Insurance record to help bolster their entitlement.

“Thousands of taxpayers with incomplete years in their National Insurance record could be financially better off in their retirement if they make voluntary payments to top up any incomplete or missing years.”

The rates of voluntary National Insurance contributions will rise from 31 July. 

Eligible taxpayers can find out how to check their National Insurance record, obtain a State Pension forecast, decide if making a voluntary National Insurance contribution is worthwhile for them and their pension, and how to make a payment on GOV.UK.

Taxpayers can check their National Insurance record, via the HMRC app or their Personal Tax Account.

Former Pensions Minister Steve Webb, a consultant at actuaries LCP, said: “This is great news for people thinking of topping up their state pension. 

“For most people, paying voluntary NI contributions to deal with a shortfall in their state pension makes excellent financial sense. But it is also important to make sure that extra contributions are right in your individual case as sometimes additional contributions may not boost your pension. People need time to talk through their options with DWP and then make the correct payment to HMRC and this extension to the deadline should give them time to do this. The Government is to be commended for listening to the calls to extend the deadline”.



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