Should you top up your pension ahead of the April NI contributions deadline?

While the state pension alone isn’t enough to live comfortably in retirement, it can form the bedrock of many pensioners’ income.

Not everyone gets a full state pension and you need at least 10 qualifying years on your National Insurance (NI) record to receive anything under the new state pension system.

To get the full new state pension, you usually need 35 qualifying years while for the basic state pension you normally need 30 or more.

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If you're not on track to get a full state pension, you can pay for any missing years with voluntary contributions, while others can get free credits if they couldn't work due to illness, unemployment or caring responsibilities. It’s worth checking if you qualify for credits before paying voluntary contributions.

You can even top up your NI record after you’ve reached state pension age and are facing a shortfall.

Because you can only pay for missing NI years for the past six tax years, this means you only have until 5 April to pay for any gaps in the 2019/20 tax year.

However, there are some circumstances where it’s not worth paying to top up.

Adam Cole, retirement specialist at wealth management firm Quilter, said: “In most cases it will make sense to top up your National Insurance contributions in order to boost your state pension. However, not everyone will benefit from making increased payments even if they are eligible.”

Here are six scenarios where topping up is unlikely to be worth the upfront cost.

1. You already have 35 years of contributions

If you already have the full 35 qualifying years on your NI record, there’s no point topping up.

Cole notes: “Those who already have the 35 years of qualifying contributions required for a full new state pension typically have little to gain by making voluntary top-ups. The additional contributions won’t increase their pension entitlement, meaning they risk spending money for no return.”

Those in their 50s may already have the full 35 years of NICs. For example, a woman who started work at age 18, and has worked 35 years paying NICs, would now be aged 53.

You can check your state pension forecast on gov.uk to see if you already qualify for the full state pension.

2. You are young and working

If you’re nowhere near reaching your state pension age, which is currently 66 and rising to 67 by 2028 and 68 by 2046, it probably doesn’t make sense to buy extra years just yet.

You can check what you’re forecast to receive on the government’s state pension forecast service, and what year you’ll receive it.

If it says £230.25 a week, this is the current amount awarded under the full state pension, meaning it’s expected you’ll have 35 years of NICs, even if you don’t have them yet.

The forecast also states what you’d get if you retired tomorrow with your current NIC record and how many more years you’d need to contribute to get the full £230.25.

Cole says: “If you are young and have many years working ahead of you then it is important not to make the decision [to top up] too early and achieve your qualifying status through the workplace.”

3. You’re eligible for Pension Credit

If you’re on a low income and eligible for Pension Credit, it probably won’t make sense to top up your state pension.

Cole says: “If you are likely to receive Pension Credit or other income related benefits, then any top up to your state pension will impact your ability to claim these in future.

“Pension Credit in particular isn’t just an income source either – it gives you access to a free TV licence (if you are over 75), as well as help with NHS costs. Pushing yourself out of this benefit could be costly.”

4. You’re in poor health

As well as your age, you also need to consider your health. Buying NI credits may not make sense if you’re unlikely to live to state pension age, or much past it.

According to Steve Webb, partner at the pensions consultancy LCP and a former pensions minister, those who fill in gaps usually make their money back within four years.

So depending on your life expectancy, it may not be worth topping up.

Cole says: “If you are in poor health then you may not benefit from the top up should you pass away during the early stages of your retirement.”

5. You look after children

It may be possible to get NI credits and boost your state pension without paying for them.

Helen Morrissey, head of retirement at investment platform Hargreaves Lansdown, explains: “Before you hand over any money to top up your state pension, you first need to check whether any of those gaps can be filled by a benefit that comes with an automatic NI credit.

“For instance, you may have been at home caring for a child but not claiming Child Benefit. In such cases, it is possible to backdate a claim and get those credits topped up for free.”

Credits are available to those who are not paying National Insurance because they are unemployed, caring for family or on parental leave.

This includes grandparents looking after grandchildren. These Specified Adult Childcare Credits let a parent receiving Child Benefit transfer the National Insurance (NI) credit to an eligible family member such as a grandparent.

6. You would pay more tax

Another situation where you might want to think twice about topping up your state pension is if it pushes you into a higher tax bracket.

“You may find that boosting your state pension tips you over a tax threshold so you will need to consider carefully whether the top-up is worth your while,” comments Morrissey.

If, for example, you paid £923 to fill in the full 2024-25 tax year, this would boost your state pension by £6.58 a week. Over a year, that’s an extra £342.16. But if that cash was liable for 40% tax – because you had other retirement income such as from workplace pensions – you’d only have £205.30 left.

You’d then need to live for four and a half years past state pension age to get your £923 back.

7. The years you want to top up are too expensive

The cost of topping up missing NI years varies depending on which year you’re paying for.

For example, the cost to fill a missing year for 2025/26 is £923 a year, but to fill a missing year for 2019/20 it is £780.

Cole explains: “You need to ensure the year you are looking to add will make sense from a financial perspective.”

What to do if you’re not sure about topping up your state pension

If you’re not sure whether to top up your state pension the first thing to do is use HMRC’s state pension forecast tool to see how much you are due based on your age and if there are any NI gaps you can fill.

You can also check your National Insurance record through your Personal Tax Account, or on the HMRC app, where you can take a survey to assess your suitability to pay online.

You can also contact the Future Pension Centre (if you are below state pension age) on 0800 7310 175 who will be able to give you guidance and tell you if paying extra will increase your state pension entitlement.