National Insurance/state pension

Tosh · January 13, 2023

From an email from our financial advisor chap - I am sure Murph/Cobs can weigh in...

To qualify for the maximum new State pension, which is currently £185.15 per week, individuals need 35 years of National Insurance contributions (NICs). A minimum of 10 years NICs is needed to qualify for any State pension at all.

Gaps in an individual’s NIC record can occur if the individual was not earning, or had low earnings, was self-employed but didn’t pay NICs because of small profits, or has lived/worked outside the UK. Voluntary contributions can be paid to fill the gaps. Usually voluntary NICs must be made within six years of the gap year. So payments this tax year (by 5 April 2023) can make up for gaps from 2016/17 to date.

But men born after 5 April 1951 and women born after 5 April 1953 also have until 5 April 2023 to pay voluntary contributions to make up for gaps between April 2006 and April 2016. [it seems older gaps are not all quantified online but if you still have anything like a P60 for the year of the gap it'll help as these will be cheaper years] You cannot pay voluntary NICs if you are eligible for NI credits, or if you are a married woman or widow who is paying reduced rates.

Action Points

You can find out how much State pension you may get via : Check your State Pension forecast - GOV.UK (www.gov.uk) Alternatively you can contact the Future Pension Centre on 0800 731 0175. This service should confirm if you have any NIC gaps, if you are eligible to pay voluntary contributions, and how much it will cost.

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I found my record/gaps etc online (via Gov gateway). Going back to the older years was a bit of a faff but if you have the info, you'd need to call HMRC (NI) to get a ref number to make a payment. I now have my 35 years

Gethin · January 13, 2023