How to top up your State Pension

Topping up your NI contributions could boost your State Pension by up to £65,000 at an up-front cost to you of little more than £8,000. But you only have until April 2025 to take advantage.

State Pension top up deadline set for April 2025

Many pension savers could boost their retirement income by up to £65,000 by taking advantage of a time-limited concession.

The Government allows pension savers to make voluntary National Insurance contributions to cover any years that are missing from their National Insurance record.

This ensures that the saver can get the maximum State Pension possible.

Normally, you can only 'buy back' a maximum of six years but, due to a time-limited concession as a result of changes to the State Pension system, savers can fill in an additional 10 years.

The deadline for this concession was originally set for April 2023 but, as that date drew near, the DWP was inundated by pension savers desperate to beat the cut-off time, with many claiming they were simply unable to get through. 

In response to ongoing difficulties experienced by applicants, the Government has pushed the date back to April 2025.

Let’s take a closer look at the role of your National Insurance record in determining the size of your State Pension, and how to go about making voluntary contributions.

What happens if you haven't paid enough National Insurance Contributions?

Your National Insurance (NI) record determines how much State Pension you receive.

It’s possible to develop gaps in your NI record, which means you haven't paid sufficient contributions or got enough credits in a year.

This can happen if you were employed but weren’t earning enough to pay NICs, have been unemployed but didn’t claim benefits or have been self-employed and don’t make enough to pay them, for example.

Gaps in your NI record could mean you will miss out on retirement income.

To qualify for the full New State Pension, which currently pays £221 per week, you need to have a total of 35 years of NICs.

You’ll need at least 10 qualifying years of NICs to get any State Pension at all.

If you have less – or are on track to fall short  – you can likely buy missing years by paying Class 3 Voluntary Contributions.

Who can (and should) top up their State Pension?

Anyone aged 40 to 73 who has gaps in their NI record will likely be eligible for State Pension top-ups. 

However, it will likely be more relevant to those nearing retirement or who have retired recently as they will be more likely to have missed years over their career and have less chance to make up those years over the remainder of their work life.  

That's not to say younger workers shouldn't also take the time to check if there are any missing or partial years.

Anyone can check their National Insurance record here.

How much will State Pension top ups cost?

Anyone entitled to the new State Pension can fill NIC gaps at a rate of £15.85 a week, which means you can buy back a whole missing year for £824.

There are slight variations in the cost in some years  – the 2020-2022 years will cost slightly less than £800, for example  – so treat that figure as a rough guide.

How much will top ups be worth to me?

Each qualifying year is currently worth a boost of up to £328 to your annual pension income.

That means your top-up will have paid for itself within three years, while if you live 20 years after retiring, your £824 top-up will have netted you an additional £6,560.

Assuming you had 10 years missing in your record, topping them up at a cost of around £8,240 would net you £65,600 more over a 20-year retirement. 

Things to consider before topping up your pension

If you're likely to be on a low income during retirement, buying back extra years may not help you. If you qualify for Pension Credit – or think you might – you'll effectively get the full State Pension even if you haven't paid enough NI.

It might also affect your eligibility for other benefits such as Housing Benefit and Council Tax Benefit.

If you're in poor health, you may want to think twice before buying missing years. You may not survive long enough to make it worthwhile.

You may be entitled to additional State Pension through your spouse's NI record.

Check this out to make sure you don't buy any extra years you won't actually need.

Finally, i you have adequate pension provision of your own, you may decide topping up the State Pension isn't necessary.  

Also if you are below State Pension age you may still have time to reach a full 35-year record, which means paying now might not be worth it.

You can find out more about your NI record, how much topping up will cost and whether it’s worth doing it now on the Government’s check your State Pension tool. 

How to buy class 3 voluntary NI contributions

To buy extra years, go to the HMRC website. You can pay monthly by Direct Debit or quarterly. For more information, call the Pension Service on 08456 060 265.

If you're already receiving your State Pension it will be increased as soon as your voluntary NICs are received, but the increase will not be backdated.