Act Now: Boost Your UK State Pension by £5,400 Before April 2025 Deadline!
October 18, 2024After April 2025, the option to pay for voluntary contributions will be limited to the past six years, which may not be sufficient for qualifying for a new State Pension.
Individuals are encouraged to check their eligibility for top-ups using the government's online tool, which has already been utilized by millions.
The cost to 'buy' a missing year of National Insurance contributions is set at £824, making it a viable option for many.
Alice Haine, a personal finance analyst, emphasizes that a minimum of 10 qualifying years is necessary to receive any State Pension.
A 2016 HMRC scheme allows individuals to buy back National Insurance years dating back to 2006, with the deadline extended to April 2025.
To qualify for a full State Pension in the UK, individuals must have at least 35 full National Insurance years on record.
Since the launch of a new digital service in April, HMRC has processed over 10,000 payments totaling £12.5 million to help individuals boost their pensions.
Martin Lewis, in his latest MoneySavingExpert newsletter, warns that taking action before April 2025 could enable individuals to gain over £5,400 through National Insurance contributions.
Pensions Minister Emma Reynolds has urged individuals to check their National Insurance records and consider filling any gaps before the deadline.
Filling gaps in National Insurance contributions may require small payments, yet it can significantly increase retirement income.
HMRC has warned workers to act quickly to top up their state pension as the deadline to maximize their National Insurance contributions approaches.
Each additional National Insurance year can add approximately £329 annually to the State Pension, potentially resulting in a total payout of £5,400 for a 66-year-old man.
Summary based on 3 sources
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Sources
The Independent • Oct 17, 2024
HMRC urges workers to plug national insurance years to secure full state pensionExpress.co.uk • Oct 17, 2024
Martin Lewis’ ‘six-month warning’ for Brits which could be worth thousandsThe Mirror • Oct 9, 2024
HMRC update means some Brits have six months to boost State Pension