HMRC's National Insurance warning as pensioners told 'time is running out'

Men born before a certain year cannot apply for this pension boost - and there's a criteria for anyone trying to fill National Insurance contributions.

Brits have been urged act ahead of a looming deadline that could boost their pension. Workers have just five months (April 5, 2025) to buy back any gaps in the National Insurance contributions from 2006 to 2016, which could see a rather 'lucrative' return. Gaps in your NI can occur for many reasons, including if you were employed but had low earnings, unemployed but were not claiming benefits, were self-employed but did not pay contributions because of small profits, or due to living or working outside the UK.

This doesn't apply to men born before April 5, 1951 and women born before 5 April 1953 - who will be on the old State Pension. According to MoneySavingExpert, anyone younger than that should look into back-paying before the cut-off to increase their New State Pension monthly payments. You need around 35 full NI years to get the maximum State Pension, but there are some exceptions were this could be more.

One woman who listened to Martin Lewis' podcast on the incoming deadline, paid up to £5,000 (it could have been less) to increase her State Pension by £2,550 a year. If she lives for 20 years after the qualifying state pension age, she'll see a boost of £51,000.

HM Revenue and Customs (HMRC) says more than 10,000 payments, amounting to £12.5 million, have been made through a new digital service it launched back in April to make it easy to plug in NI gaps. The Express reports that some individuals 'may qualify for NI credits instead of having to make contributions, so it's vital they check and decide what's best for them'.

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"We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement," said Pensions Minister Emma Reynolds. "That's why I urge everyone to check if they could benefit by filling gaps before the deadline passes. Using our online tool means only a few clicks could make a huge difference to your future."

Finance analyst Alice Haine explained that most people need at least 10 years of NI contributions to receive any state pension at all, and at least 35 years to receive the full new state pension (currently £221.20 a week). However, these don't need to be 'consecutive years'.

"Plugging gaps can be quite an expensive process, so it is important to assess whether you actually need to buy back any missing year," she added. "This will depend on how many more years you plan to work, and whether you are eligible for NI tax credits, which fill the gaps, such as those who have been sick, were unemployed or took time out to raise a family or care for elderly relations."

You can learn more about voluntary NI contributions, and check if you're eligible for NI credit, here.

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