State pensioners have been urged to check if they could get some extra payments. Benefits experts have warned you may not realise you could claim more, as some claimants could increase their entitlement by thousands of pounds.
You typically need 35 years of full contributions to get the full new state pension, which is currently worth £241.30 a week, or £12,547.60 a year. Experts at financial support group Money Wellness have warned the system can be complicated when it comes to buying NI contributions.
External relations manager Rebecca Lamb said: “The system isn’t just one rule – it’s a patchwork of thresholds, qualifying years, credits and exceptions. You need 35 qualifying years for the full state pension, but not every year automatically counts as a qualifying year, and gaps can come from things like low earnings, time off work or self-employment.
“What makes it tricky is that people often don’t realise they have gaps until much later. Add in changing rules over time and it’s easy to feel unsure about where you stand or what action to take.”
A key time limit to bear in mind is that you can only buy contributions up to six tax years ago. Ms Lamb warned the complicated system may put people off going through the process and that sadly this “happens more than you’d think”.
She said: “When something feels confusing or time-consuming, some people put it off. The danger is that they could miss the window to fill gaps or don’t realise it’s worth doing.”
How much could buying National Insurance contributions boost your state pension?
The expert said that paying to fill in even small gaps can “make a big difference”. She explained the numbers involved: “Each missing qualifying year could reduce your state pension by around £300 to £330 a year. That might not sound huge, but over a 20-year retirement, that’s roughly £6,000 lost – and that’s from just one year, although the exact amount will vary depending on individual circumstances and future changes.”
Buying one full National Insurance year typically adds £6.89 a week to your state pension entilement, or around £358 a year a the current rates. It’s also worth bearing in mind that the triple lock increases payment rates each April, in line with the highest of 2.5 percent, the rise in average earnings or inflation.
State pension rates increased 4.8 percent this April thanks to the policy. If you want to check if you have gaps in your NI record, Ms Lamb recommended visiting the Government website.
She explained: “The easiest place to start is the Check your State Pension forecast service. It gives you a clear snapshot of what you’re on track to receive and whether you have any gaps.” This tool is available to use on the gov.uk website.
