Extended voluntary window – catch up now to ensure future full entitlement to state pension.
Currently, there’s an extended window for individuals to plug holes in their state pension qualifying years record using voluntary NI contributions. However, this is coming to a close after 5 April 2023.
The state pension is only available to those who have a sufficient NI history. Entitlement is accrued by reference to “qualifying years”. Missing years can result in a shortfall when retirement age is attained, meaning only a partial pension is paid. If the gap is substantial, there may be no entitlement at all. To permit people to catch up on missing years, the government permits payment on class 3 NI at a fixed rate – known as voluntary contributions – to be paid. Usually, this can only be done for the last six years. However, there is a current incentive extending the window back to 6 April 2006.
From 6 April 2023 this will revert to the standard six years. It’s crucial that you check your NI record and make good any missing years’ contributions for tax years prior to 2017/18 before that date or the opportunity may be lost for good.
Check your National Insurance record – GOV.UK (www.gov.uk)
Pay voluntary Class 3 National Insurance: Overview – GOV.UK (www.gov.uk)