Pay any gaps in your NIC record before the extension ends

Due to an HMRC extension, you currently have an opportunity to pay any gaps in your National Insurance Contribution (NIC) record as far back as 2006. This opportunity will END on 5 April 2023, and after that, you will only be able to go back six years.

For further details on this extension, please see section 4c of the Government’s State Pension Guidance here.

Gaps in your National Insurance Contributions may reduce your entitlement to the Full State Pension, which is currently £9,627.80pa. You may find you have a gap in your records because you:

• Lived Abroad
• Worked with low earnings
• Not worked and not claimed any benefits
• Been self-employed but not paid NICs because of small profits
• You have previously ‘contracted out’ your state pension
•  

It is generally advisable to pay any missed National Insurance Contributions as the return could be significant – an £824 contribution could provide an additional £275 in retirement, meaning you will break even within three years! Better still, the State Pension increases each year.

To be eligible for this opportunity, you must be a man born after 5 April, 1951, or a woman born after 5 April, 1953. You also cannot pay voluntary contributions if (1) you’re eligible for National Insurance Credits or (2) you’re a married woman or widow paying reduced rates.

You can check your NIC record and State Pension forecast by logging into the government gateway here or by completing a BR19 application form available here.