The Department for Work and Pensions (DWP) has issued an urgent reminder for people to check their State Pension entitlements before the April 5, 2025 deadline. This deadline marks the last opportunity for individuals to buy voluntary National Insurance (NI) contributions to fill any missing years between 2006 and 2018.
Failing to act before this date could mean losing out on higher State Pension payments, as from April 6 onwards, people will only be able to backdate contributions by up to six years instead of 12.
Key Takeaways
- April 5, 2025, is the deadline to buy back missing NI contributions from 2006-2018.
- After this date, you can only backdate payments by six years instead of 12.
- Paying voluntary National Insurance contributions can increase your State Pension payments significantly.
- Check your NI record online and act now to avoid missing out.
Why Is This Deadline Important?
Your State Pension amount is based on your National Insurance record. If you have gaps in your contributions, you may receive a lower pension than expected.
By paying voluntary National Insurance contributions, eligible individuals can:
Increase their State Pension payments significantly.
Receive much more in pension payments than they spend on buying back missing years.
Secure a more comfortable retirement with higher weekly pension income.
Who Should Check Their NI Contributions?
Anyone who has gaps in their National Insurance record between April 6, 2006, and April 5, 2018, should check whether they can buy back missing years before the deadline.
This applies particularly to people who:
Took career breaks or time off work.
Lived or worked abroad for some time.
Were self-employed but had low earnings.
Had gaps due to unemployment or illness.
If you’re unsure about your NI record, you can check it on the UK government website.
What Happens After April 5, 2025?
If you miss the deadline, you will not be able to pay for missing NI years before 2018. After April 5, you can only backdate NI contributions by six years, which means:
Any missing contributions before 2018 will be lost forever.
You may receive a lower State Pension than you could have.
You could miss out on thousands of pounds in potential pension payments.
How to Buy Back Missing NI Contributions
The DWP has an online form where individuals can request a callback to discuss their National Insurance record.
Steps to Check and Pay for NI Gaps
- Check your National Insurance record on the UK government website.
- See how many qualifying years you have and whether you need to top up contributions.
- Contact HMRC or DWP to confirm if making voluntary payments will boost your pension.
- Pay for missing NI years before April 5, 2025 to maximize your State Pension.
The DWP urges everyone to take action before the deadline to maximize their pension benefits and ensure financial stability in retirement.
FAQ
What is the April 5, 2025, deadline for?
The deadline is for paying voluntary National Insurance (NI) contributions to fill gaps in your record between 2006 and 2018, which can help increase your State Pension.
How do I check my National Insurance record?
You can check your National Insurance record online through the UK government website to see if you have any missing years.
Who should consider making voluntary NI contributions?
Anyone with gaps in their NI record who wants to increase their State Pension amount should consider topping up before the deadline.
How much does it cost to buy back missing NI years?
The cost varies, but the standard rate for Class 3 voluntary NI contributions is approximately £17.45 per week for the 2024/25 tax year.
What happens if I miss the deadline?
After April 5, 2025, you will only be able to backdate contributions by six years instead of 12, which could result in a lower State Pension.
How do I make a payment for missing NI years?
You need to contact HMRC to confirm eligibility and payment options. Payments can be made online, by phone, or through your bank.
Is it worth paying voluntary NI contributions?
For many people, yes. A small one-time payment could significantly increase your pension income for life, making it a good investment.
Where can I get more information?
Visit the UK government website or contact the Department for Work and Pensions (DWP) for personalized advice on your pension entitlement.
