Zarah ChoudharyEmployees have until 5th April to fill any gaps in their National Insurance (NI) records dating back to 2006 to boost their State Pension entitlement.
A minimum of 35 years of NI contributions is required to receive the full State Pension, so anyone who may have gaps should check their record now to consider filling them before the deadline.
After this date, individuals will only be able to make voluntary contributions for the last six years of NI credit.
Currently, NI credits can be purchased for those who are employed, costing £17.45 per week or £907.40 for a full year.
Each extra completed year of National Insurance purchased increases State Pension payments by up to £6.32 per week or £328.64 per year, before any annual increases.
MoneyHelper explained that making voluntary NI contributions is a way to pay a small amount now to receive a larger State Pension in the long run.
For example, paying between £15.30 and £907.40 for one extra NI year could result in receiving over £1,600 if someone lived for another five years and over £6,500 if they lived for another 20 years.
However, as it can take years to recoup the amount paid, individuals should consider how long they expect to receive their State Pension.
If someone were to die before reaching State Pension age, they would not get anything back.
Jonathan Watts-Lay, director at WEALTH at work, said: “With the 5 April deadline fast approaching, it is important for those who think they may have not built enough entitlement to receive the full State Pension to check their records now.
“Those who have a gap of more than six years in National Insurance contributions, which may include those who have taken a career break, have worked abroad or had time off for child or elderly care, may want to consider filling these gaps in their record now to ensure they are on track to receive the full State Pension entitlement at retirement.”
He added: “It’s exceptionally important to ensure employees are supported to understand all their options when approaching retirement so that they are able to make informed decisions.
“This includes helping employees realise all the options for creating a retirement income such as their workplace pension or any other savings such as an ISA, as well how to find out their State Pension entitlement.
“Many leading companies now deliver this sort of support in the workplace through financial education workshops, one-to-one guidance or coaching sessions, digital tools and helplines, as well as providing access to investment advice.”
