HMRC is sending out a warning to state pensioners who were born after 1951 regarding an upcoming deadline that could boost their pension payments. These pensioners have until 5 April 2025 to fill in any gaps in their National Insurance contributions in order to maximize their state pensions. It is important for pensioners to review their NICs record between 6 April 2006 and 5 April 2018 and make any necessary payments before the deadline.
According to HMRC data, over half of taxpayers have already topped up one year of their NICs record. The average online payment for this purpose is around £1,193, with the largest weekly State Pension increase being £107.44. After the deadline passes, only voluntary contributions will be allowed for the previous six tax years.
It’s essential to note that this rule specifically applies to pensioners born after 1951. Men born before April 5, 1951 and women born before 5 April 1953, who are on the old State Pension, are not affected by this deadline. One woman mentioned in the article paid around £5,000 to boost her State Pension by £2,550 per year after listening to Martin Lewis’ podcast. If she lives for 20 years after reaching the qualifying state pension age, she stands to gain a total of £51,000.
Pensions Minister Emma Reynolds emphasized the importance of pensioners receiving the support they deserve in retirement. She encouraged everyone to check if they could benefit from filling in any gaps before the deadline. Taking advantage of online tools can make this process quick and easy, potentially making a significant difference in future pension payments.
Finance expert Alice Haine highlighted that filling in these gaps can be a costly process, so it’s crucial to assess whether it is necessary based on individual circumstances. Factors such as how many more years a person plans to work and eligibility for NI tax credits should be considered. These credits can help fill the gaps for individuals who have been sick, unemployed, or took time off to raise a family or care for elderly relatives.
In conclusion, pensioners born after 1951 have a limited time to top up their National Insurance contributions and maximize their state pensions. It is recommended to review your NICs record and make any necessary payments before the 5 April 2025 deadline to secure a higher pension amount in the future. Stay informed about updates like this by subscribing to daily newsletters for the latest news and information from across London.