Do you need to make voluntary National Insurance contributions? Check your national insurance record before 31 July 2023. The deadline is approaching!
If you plan to claim the full UK state pension at any time in the future, ensure you check your national insurance record before 31 July 2023.
Currently, voluntary contributions can be made to plug gaps back to April 2006, but from 1 August 2023, the timeframe for making voluntary contributions will revert to the normal six years.
This could have serious implications on your financial future should you have any gaps in contributions.
To be eligible for a full State Pension you must have 35 qualifying years of contributions. If you have taken an employment break for any reason or been self-employed and have not earned enough profits to pay full contributions, you may find you have a shortfall. If you have 10 years of contributions you will be eligible for part payment, but obviously, the amount will be much lower than the full State Pension allowance.
If you find you have a shortfall in contributions, it may be possible to make voluntary National Insurance contributions to make up any shortfall and receive the full State Pension upon retirement age.
Visit Gov.UK to check your National Insurance record and see if you have any gaps in your contributions.
Usually, if you wish to make voluntary National Insurance contributions you may only do so for the past six years but up to 31 July 2023 there is an extension in place. Up to this date, you may make voluntary contributions dating back to 6 April 2006. However, this extension only applies if:
- you are a man born after 31 July 1951
- a woman born after 31 July 1953
How to check if you need to make voluntary National Insurance contributions:
- Act NOW! You only have until 31st July 2023!
- Check your State Pension forecast
- Check your National Insurance record
- Identify any errors or missing credits
- Identify if you are eligible for any credits
- Identify any gaps in contributions
- Contact HMRC to discuss any errors
- Calculate if it is worth making up any gaps with voluntary contributions
- Get professional financial advice before making any voluntary contributions. It is not always worth it and voluntary National Insurance contributions do not always increase your State Pension.
Visit our page on National Insurance Contributions for more information and frequently asked questions.
If you would like us to help check your State Pension or advise on retirement planning, get in touch by phoning 01237 472071