How do I top up National Insurance contributions now the deadline has been extended?

Act now to help boost state pension payments when you retire

I understand that the deadline for topping up your state pension National Insurance has been extended from 5 April to 31 July – is this correct?

As a mother who raised children and only worked for a limited number of years, I have many ‘missed’ years. I have just turned 60 and understand that I can pay all the years’ National Insurance contributions until 2030 now to go from a state pension of £105 per week to £145 but topping up the missed years’ National Insurance contributions could raise this to £185. How do I do it?

Karen

Two weeks ago, I answered a question about paying voluntary National Insurance (‘NI’) contributions to boost state pension entitlement. At the time I wrote that article, the deadline for making the most of transitional arrangements which allow you to go all the way back to 2006 to fill any NI gaps and potentially boost your state pension entitlement was 5 April. Usually, you can only pay voluntary NI for the previous six years. However, things have shifted quickly. Publicity around the deadline led to government phone lines becoming overwhelmed. This in turn created the risk people who could benefit from paying voluntary NI might struggle to do so because they were stuck in a phone queue.

In light of this, the government has extended the deadline to 31 July. Anyone who thinks they might benefit from paying voluntary NI should still aim to speak to the Future Pension Centre as soon as possible, rather than putting it off and risk being caught in another telephone logjam when the new deadline comes closer.

The Future Pension Centre should be able to tell you whether paying voluntary NI will increase your state pension entitlement. This article has more information about paying voluntary NI to boost your state pension entitlement and what you need to consider.

One thing to note: you can only fill historic NI gaps – it is not possible to buy NI for future years. This link has more information.

If you have spoken to the Future Pension Centre and decided you want to pay voluntary NI, you can contact HMRC to find out how much topping up will cost and get an 18-digit reference number. This link has the details.

Once you have your reference number, you can pay HMRC directly through your bank or building society, online or in branch, or you can pay by cheque.

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Please note, we only provide information and we do not provide financial advice. If you’re unsure please consult a suitably qualified financial adviser. We cannot comment on individual investment portfolios.