As many as one in four pensioners are unaware they could get extra income from their state pension by filling in gaps in their National Insurance record, according to new research.
A further 10% of those aged over 66 were unsure about the rules for backdating National Insurance (NI) to increase their state pension, the data from retirement specialist Just Group found.
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Currently the full new state pension is £11,973 for the 2025/26 tax year. But more than 200,000 pensioners receive less than 50% of the full amount, according to DWP figures.
“Before people claim the state pension, we’d urge them to check if they will actually receive the full new state pension and if not to review their National Insurance record to see where they have gaps.”
How much National Insurance contributions do you need for the full state pension?
Currently, at least 35 years of qualifying National Insurance contributions are required to claim the full new state pension.
A minimum of 10 qualifying years are needed in order to receive any new state pension.
There is widespread confusion about qualifying years. Just’s research found fewer than six in 10 (57%) adults of state pension age or older knew how many years’ worth of NI contributions they need to claim the full new state pension.
But at the same time, the state pension is absolutely crucial to many pensioners’ incomes. Around one in seven (13%) over 66s said the state pension accounted for over 90% of their monthly household income, Just’s research found, with 44% saying that it represented more than half of their household income.
How can I check my National Insurance record for the state pension?
You can check your National Insurance record online to see what you’ve paid up to the start of the current tax year. You’ll also be able to see if gaps in contributions mean some years do not count towards your state pension (they are not qualifying years).
The online tool can show you if you’ll benefit from paying voluntary contributions to fill any gaps, how your state pension forecast will change if you decide to pay voluntary contributions, and if you can pay voluntary contributions online and how much this will cost. Make sure you check if you qualify for National Insurance credits before making voluntary contributions.
It will also show how much state pension you’re on track to get, as well as your state pension age.
Can I plug gaps in my National Insurance record for the state pension?
If you reached state pension age after 6 April 2016 you’ll be on the new system. Gaps in National Insurance records can be backfilled by paying for voluntary Class 3 National Insurance contributions. However these can only be made for the previous six tax years.
The rate you pay depends on which year you're buying.
£824.20 (£15.85 a week) to buy 2019/20
£795.60 (£15.30 a week) to buy 2020/21
£800.80 (£15.40 a week) to buy 2021/22
£824.20 (£15.85 a week) to buy 2022/23
£907.40 (£17.45 a week) to buy 2023/24
£907.40 (£17.45 a week) to buy 2024/25
£923 (£17.75 a week) to buy 2025/26
If you're self-employed or you're topping up a partial year, the cost will be lower.
For each year you buy you get an extra 1/35ths state pension. This could add up to £340 a year to your state pension – or £6,800 over 20 years. This means that, as long as you live at least three years after the official retirement age, you’ll get your money back.
However if you reached state pension age before 6 April 2016, you’ll be on the old pension system. This means you can’t boost the amount you get using voluntary contributions.
Is filling National Insurance gaps worth it?
The voluntary NI contributions system is generally good value when you consider that the state pension rises each year depending on whichever is the highest of 2.5%, wage growth or CPI inflation, thanks to the triple lock. In essence, the state pension becomes more valuable over time.
But the state pension age is not set in stone. While it is currently 66, it is set to rise to 67 from next year with the higher age fully implemented by April 2028. It is then expected to increase to 68 between 2044 and 2048 but speculation that this may get brought forward has been heightened in recent weeks amid concerns over the long-term sustainability of the benefit.
Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: “With that in mind, for younger people in particular, it may not be worth the expense of filling the gaps as they will hit the 35-year contribution target anyway over the course of their life.”
“For them, it would be taking a real risk to buy now unless they are sure they won't make them up later, for example, because they plan to stop working for a long period, for example to go travelling.”
But the option to pay for missing years over the past six years could be useful for someone who may have just returned from a stint working overseas, for example, and is hoping to retire soon.
Ultimately, any potential gain from buying voluntary NI contributions will be wiped out if your health is poor and you are unlikely to live long enough to benefit.
“Also if you are a higher earner, for example, it might not be worth topping up your NI record as it could tip you into a higher tax bracket when you receive your state pension income,” Haine said.
Can I get National Insurance credits?
People may be able to claim National Insurance credits for free to backfill gaps in their National Insurance records, if they have been out of the workforce for various reasons such as maternity leave, unemployment, sickness or providing unpaid care.
Haine said: “You might find you have more years built up than you realise as you can also build up NI years for free by acquiring tax credits.
“Scenarios that can potentially earn NI credits include being a parent or guardian registered for child benefit for a child under 12, being on statutory sick pay, looking for work, fostering a child or caring for a sick or disabled person, being on jury service, being on maternity, paternity or adoption pay and even being wrongly imprisoned.”
If you have a child under 12, or you look after one in your family, check if National Insurance credits can be transferred to you. When Child Benefit is paid, National Insurance credits are added to the record of the person claiming it. But if that person is already working and making contributions anyway, they can ask to transfer them to you at the end of each tax year.
“While there are certain stipulations for each scenario, NI credits can often be automatically applied, so it is always wise to put in a manual claim if they are not on your record,” said Haine.
Should I top up my National Insurance record?
Calculating whether to top up can be confusing and ultimately there is no point paying for more years than you need because you won’t get that money back.
The best solution, said Haine, is to call the Government’s Future Pension Service on 0800 731 0175 to double check how many years you can buy and whether voluntary contributions will add to your state pension. Those who have already reached state pension age will need to contact the Pension Service on 0800 731 0469.
“An adviser at the Future Pensions Service can chat through this with you and offer guidance for your unique situation and whether buying a missing year will actually give your eventual state pension a bump up,” Haine said.
For those with Pension Credit queries, Citizens Advice can be a good port of call to calculate whether topping up is worth it or not.
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