Update: Deadline for voluntary National Insurance contributions extended to April 2025 to check your National Insurance record to enable you to fill in any gaps in your NI contributions. Anyone with a shortfall in their record has until April 2025 to buy back their missed years to qualify for a full state pension
If you are aged 45 to 70 check with HMRC re buying missing national insurance years
We are advising our clients to check their National Insurance (NI) record within the next six weeks if they wish to avoid a state pension shortfall when they retire. You could have a gap because you took time off to go travelling or to raise children for example.
NOTE: The deadline has been extended to April 2025.
State Pension Forecast Calculator
If you are not at state pension age, check your NI contribution record by logging onto the State Pension forecast calculator, which you can access through your Government Gateway.
No Government Gateway user ID? Not a problem. To set up a Government Gateway click on the link above and choose ‘start now’. Enter your name, email address and a password. You must then answer security questions to verify your identity, (you will need your National Insurance number, passport, pay slips or P60 to do this).
Can I claim the new State Pension?
You can claim the new state pension if you are;
- a man born on or after 6 April 1951
- a woman born on or after 6 April 1953
When can I claim the new State Pension?
The earliest you can get the new State Pension is when you reach State Pension age.
If you reached State Pension age before 6 April 2016, these rules do not apply. Instead, you’ll get the basic State Pension.
What are the requirements for State Pension?
To receive the full state pension which is currently £9,600 per year, you require at least 10 years of NI payments and a minimum of 35 years – although not consecutively. The state pension is set to rise in April to £10,600 per year.
Make sure to contact HMRC promptly if you see are any errors that need to be fixed.
If you are close to retirement age, you may not have enough time to make up the 35 years of NI contributions before your retire, you may need to consider making voluntary contributions. If you are young enough to make up the 35-years before you retire, then you will avoid the shortfall.
The deadline to top up NI shortfalls between 2006/07 and 2016/17, to qualify for a full state pension is midnight on April 5 2023. After this deadline, only missing contributions over the past 6 years could be made up.
Once you have decided how many years to top up and which ones exactly, contact HMRC to find out the cost and how to get the 18-digit reference number you need to make a payment and ensure the sum is recorded on your NI record.
This number can be given to you over the phone or sent by post but allow at least two weeks for this to come through by mail. Once you have the 18-digit number, paying for the missed years can be done by online bank transfer, from a bank at your bank or building society or paid for by cheque posted a cheque to HMRC.
State pension if you are transgender
Your State Pension might be affected if you’re a transgender person and you:
- were born between 24 December 1919 and 3 April 1945
- have claimed State Pension before 4 April 2005
- can provide evidence that your gender reassignment surgery took place before 4 April 2005
Find out more and contact the Gender Recognition team.
You do not need to do anything if you legally changed your gender and started claiming State Pension on or after 4 April 2005 – you’ll already be claiming based on your legal gender.
HB Accountants will not advise you on your pension – you will need to speak with your pensions professional. If you would like to talk to us about looking after your personal or business tax, call us on 01992 444466. We’re experts ready to support you and your business, no matter your company size or sector.
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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above
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