We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA
After 5 April 2025 options for filling historical gaps in NI contributions to state pensions will be significantly reduced
Time is running out for UK residents to maximise their state pension by filling gaps in their National Insurance (NI) record. The government has set a deadline of 5 April 2025 for individuals to address NI shortfalls dating back to 6 April 2006. After this date, contributions can only be made for the previous six tax years, potentially limiting the ability to increase pension entitlements.
How to check a state pension forecast
To determine if an individual could benefit from topping up their NI contributions, they can easily check their state pension forecast:
- Visit the official GOV.UK website.
- Download and use the HMRC app on your smartphone.
- Call the Future Pension Centre for assistance.
These methods will provide a clear picture of current pension status and highlight any gaps in NI records.
Making payments to fill gaps
When making payments to fill NI gaps, the government strongly recommends using the ‘pay by bank account’ option through their online service. This method offers several advantages: fast processing, enhanced security and reduced risk of common errors.
Using this official payment channel can help avoid delays in updating NI records, which is crucial as the deadline approaches.
Opting for payment methods outside the official online service can lead to complications:
- Even minor errors, such as underpaying by a penny, can trigger a manual review process
- Manual updates to NI records can take up to eight weeks
- Delays may jeopardise your ability to fill gaps before the deadline.
Act now to secure financial futures
With the deadline looming, it’s crucial to take action soon if individuals want to maximise their state pension
