The deadline to top-up State Pension with voluntary National Insurance contributions has been extended to 2025
Martin Lewis has issued an urgent warning to anyone planning to buy missing National Insurance years to plug gaps in their State Pension after HM Revenue and Customs announced earlier this week that taxpayers now have until April 5, 2025 to purchase them - at the frozen payment level.
The full New State Pension is paid to those with the maximum amount of National Insurance contributions, you can check how much you are due to receive on GOV.UK here using the State Pension forecast tool. However, he also warned that even if it’s adding up, there can be issues because it might stop your entitlement to Pension Credit or the returns might not be as good because it puts you in a higher tax bracket.
Ms Trott also said the DWP is working to get an online system in place that would reduce the call volume to the Future Pension Centre, allowing people to make the enquiries online. No timeline could be given, but she hoped it would be up and running by the end of this year. The danger of gaps is that you don’t accrue enough qualifying years to receive a full State Pension. Britons typically need at least 10 years of NI contributions to receive anything at all and at least 35 years to receive the maximum amount, which currently stands at £10,600.
The summary also outlines how much you would receive if you continued to contribute and what steps you need to take to improve the forecast if there are any shortfalls. Whether you need to pay up depends on factors such as how many more years you plan to work. Those aged 45 and over who are close to retirement age and won’t have enough time to achieve 35 qualifying years to receive the full New Sate Pension may be more inclined to top up, while someone close to retirement and in poor health might not feel it is worth it.
Step 4: Calculate the cost of topping up For most people the cost to make up a full year by April 5 is:However, people pay different rates depending on their situation. While those in full employment pay Class 1 NI contributions which are based on earnings and automatically deducted by their employer, the self-employed pay Class 2 and 4 based on their taxable profits and those living abroad pay Class 2.
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