Your ability to claim the maximum state pension could change...
The majority of people aged between 45 and 70 are currently able to buy missing National Insurance (NI) contributions, going back to 2006.
This is important, because you need 35 years on your NI record to claim the full new state pension (currently £203.85 per week).
If you have fewer years than this on your record, your state pension will be smaller. Note, you need 10 years to get anything at all.
However, after April 5 2025, you’ll only be able to fill gaps going back 6 tax years, so if you have many years missing on your record, you should start considering what you can do about this. This is because ‘transitional arrangements’ that were brought in when the new state pension system started, will be coming to an end.
The previous deadline for this change was meant to be July 31 2023; however, the government has further extended this to give taxpayers more time to fill gaps in their NI record.
Buying back one year of Class 3 NI contributions costs roughly £800, but could add up to an extra £275 each year to your state pension.
It might be possible for years to be added for free, if you were claiming long term Statutory Sick Pay, Jobseekers Allowance or Child Benefit for young children.
Therefore, we suggest that you check your contributions record as soon as possible. We understand that April 2025 may seem a way off in the distance, but it makes most sense to check if any of your NI contributions are missing now, so you can plan ahead and manage your finances accordingly.
There has been very high demand on the phone lines in relation to this change and this is likely to continue. If you wish to get in touch with HMRC or the DWP, we would advise calling at 08:00, when the lines open.
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If you require any further advice, please get in touch with your Burton Sweet contact…