The state pension is only available to those who have a sufficient National Insurance (NI) history. Entitlement is accrued by reference to “qualifying years”. Missing years can result in a shortfall when retirement age is attained, meaning only a partial pension is paid. If the gap is substantial, there may be no entitlement at all.
To allow people to catch up on missing years, the government permits payment of Class 3 NI at a fixed rate – known as voluntary contributions – to be paid. You can usually pay voluntary contributions for the past 6 years. The deadline is 5 April each year. If you want to make voluntary contributions for the tax years 2016 to 2017 or 2017 to 2018, the deadline has been extended. You have until 5 April 2025 to pay.
You usually pay the current rate when you make a voluntary contribution. If the gap in your National Insurance record was between 6 April 2016 and 5 April 2023, you’ll pay the rates that applied in the 2022 to 2023 tax year.
After 5 April 2025, you may have to pay higher rates or be ineligible to pay.
We would encourage you check your entitlement to the state pension. This can be done via your Government Gateway account at Check your State Pension forecast – GOV.UK
Alternatively, a BR19 form can be downloaded online and posted to The Pension Service.
If you have any queries regarding your state pension entitlement and whether to make voluntary NI contributions, please do not hesitate to consult with your usual Drummond Laurie contact.