Parents advised to reconsider pension contributions before deadline

Parents are being warned to think carefully before topping up their state pension National Insurance (NI) records by the April 5 deadline. A pension expert has highlighted that rushing to pay could lead to wasted money. Many mothers are eligible to fill gaps in their NI records now. This option allows workers to buy back NI credits for years going back to 2006. Normally, workers can only buy back records for the last six years. Child benefit allows parents to earn NI credits, which count toward their state pension. However, a change in 2013 reduced benefits for higher earners, causing many parents to stop claiming. Last week, the government announced that parents who didn’t claim child benefit could top up their state pension for free starting in April 2026. These changes mean that some parents might waste money if they pay for credits now, as they can wait for the free option. Sir Steve Webb, a former pension minister, stressed that the government needs to communicate how the new credit system will work. Parents who have gaps in their NI records because of caregiving roles can now benefit from these credits. A full voluntary contribution can increase a state pension by £328.64 each year. If someone buys a full year and lives 20 years post-retirement, this could amount to an additional £6,500 for a cost of around £907.