State Pension can be boosted before April deadline

Britons have a short window to boost their State Pension payments before the April deadline. HM Revenue and Customs (HMRC) recently highlighted that since last year, over 10,000 individuals have used a new digital service to make £12.5 million in National Insurance payments. To maximize retirement income, people must address gaps in their National Insurance (NI) records dating back to 2006. The current deadline to make voluntary contributions is April 5, 2025. After that date, contributions will only be accepted for the last six tax years. The government extended this deadline to help people affected by new State Pension rules. Eligible individuals include men born after April 6, 1951, and women born after April 6, 1953. Some might qualify for National Insurance credits instead of having to pay contributions. HMRC revealed that about 51% of users opted to add contributions for a single year, averaging £1,193 each. Personal finance expert Alice Haine emphasized the importance of NI contributions for the State Pension. Generally, at least ten qualifying years are needed to receive any pension, while 35 years are required for the full amount. She advised people to check if they truly need to fill gaps, as buying back missing years can be costly. The government's recent online services have made it simpler to manage NI contributions. Users can access their personal tax accounts to view payment gaps and contributions options. However, Haine warned that the process can be confusing, and it’s not worth paying for unnecessary years. To avoid missing State Pension benefits, Haine suggested checking for missing years through GOV.UK. If everything looks fine, no action is needed. But if there are gaps, free methods to boost the pension may be available, such as Carer’s Credit, Child Benefit, or childcare credits from grandparents. For those who can afford it, voluntary Class 3 NI contributions can fill gaps, costing around £825 for a full year. Each year purchased provides more entitlement to State Pension benefits, often recouped in about three years. Before making decisions, consulting with the Department for Work and Pensions (DWP) is crucial. For personalized advice, individuals should contact the UK Government's Future Pension Centre or the Pension Service, depending on their retirement status.