Are you unknowingly neglecting your State Pension?

id

Your State Pension could be an important source of income for you later in life, but are you paying enough attention to it now?

Mark your calendar! 5 April 2025 is the last day you can fill gaps in your National Insurance (NI) record from as far back as 2006. Why does this matter? Gaps can impact how much State Pension you end up with. We take a closer look at this and help you understand what you can do for your State Pension (this article is for people eligible for the new State Pension – i.e. if you’re a man born on or after 6 April 1951, or a woman born on or after 6 April 1953).

1. Understand how you qualify for the State Pension

People can currently get the State Pension from 66, rising to 67 by 2028. Your NI record determines whether you get it and how much you get. 

You normally need 10 ‘qualifying years’ on your record to get any State Pension and 35 to get the full amount. This might be different for you if you were ‘contracted out’.

A qualifying year is a tax year in which any of these things were true:

• You were working and paying NI contributions (these are usually taken off your pay automatically)
• You were getting NI credits 
• You paid voluntary NI contributions

Some people have gaps in their record, which could mean they end up with less State Pension. A few things can cause gaps. For example, there might’ve been a few years – or part of a year – when you were living abroad. You might also get gaps if you were self-employed and earning profits under £6,725, self-employed in a particular job or employed and earning under £123 a week (and not paying voluntary contributions). You could also get gaps if you were not working and not claiming benefits. 

2. Check whether you’re on track for the full amount of State Pension

You can check your State Pension forecast. This shows how much you’re on track to get in future, assuming you’re going to work in the UK until your State Pension age. It also tells you how much you could get with your current record. If your forecast doesn’t show you’re on track for the full State Pension (currently £221.20 a week), there may be things you can do.

You could also check your National Insurance record. If you see ‘Year full’, you made enough contributions or got enough credits for that year. If you see ‘Year is not full’, there could be a gap in your record. You could be missing that full year, or even just a week.

3. See if you can fill gaps without spending a penny

If you’ve got gaps in your record, you might be able to fill them for free with NI credits. Often, you get these automatically if you’re on some benefits or meet particular criteria – but if not, you might be able to apply for the credits. Check the government’s website to see who’s eligible for credits and how to claim them. Some claims can be backdated. 

If you’ve got a child, it’s worth applying for Child Benefit even if you choose not to receive the payments, as you can still get the NI credits.

NI credits can be transferred to people. For example, if you have a child but your partner is or was the one getting Child Benefit, they could decide to transfer their resulting NI credits to you. Credits can also be transferred to other people. Read more on MoneyHelper.

4. Look into whether voluntary NI contributions are right for you

Still got gaps? It could be worth thinking about making voluntary NI contributions. This means you buy a year or partial year for your NI record.

Usually, you can only pay voluntary NI contributions to plug gaps from the last six years. But until 5 April 2025, you can plug gaps all the way back to 2006. This could be a great opportunity for some people. Filling gaps could increase your State Pension – some people end up thousands of pounds better off in retirement.

Paying voluntary contributions won’t be right for everyone. It depends on your personal circumstances – and a lot of it hinges on age.

Nearing or at State Pension age?

Getting close to State Pension age? If you’re not on track to get the full amount and don’t think you can fill gaps in other ways, voluntary NI contributions could be the way to go. It’s worth checking whether it’s right for you.

If you’ve started claiming the new State Pension but you’re not getting the full amount, you may also be able to boost your State Pension with voluntary contributions.  

If you’re eligible for Pension Credit, an increase in your State Pension could mean you lose your Pension Credit and the other government benefits that come with it. That’s something to keep in mind when deciding whether it’s worth making voluntary contributions.

Still a while away from State Pension age?

The younger you are, the more time you have to fill gaps in your record through working or through getting NI credits. So it might make a lot less sense to make voluntary contributions. But you could still consider checking, especially if you really don’t think you’d be able to get the full State Pension otherwise.

Where can you get more information?

For more information about voluntary NI contributions, including how much they cost and what ‘class’ of contributions apply to you, you can visit GOV.UK. You an also check out our article.

It’s a big decision and you usually can’t be refunded. So if you’re considering paying voluntary contributions and you’re not at State Pension age, contact the Future Pension Centre. If you’ve reached State Pension age, you can get in touch with the Pension Service or the Northern Ireland Pension Centre. They can help you understand whether voluntary contributions could boost your State Pension. 

More things to consider…

You can’t boost your State Pension beyond the full amount. 

Your State Pension is considered ‘income’, so boosting it might mean you have more income tax to pay.

Lived or living abroad? What this could mean for your NI record and UK State Pension depends on the country. Learn more on GOV.UK.

 

The information here is based on our understanding in February 2025 and shouldn’t be taken as financial advice.

Your own personal circumstances, including where you live in the UK will have an impact on the tax you pay. Laws and tax rules may change in the future.