Are you en route to getting your full state pension?
Could you be missing any years in your National Insurance (NI) record?
Why should you consider filling these gaps?
If your retirement is right around the corner, or even if you have taken a winding scenic path, you still have time to make the most out of the journey and your state pension.
There is good news for taxpayers: The transitional arrangements were due to end this tax year, meaning you had until April 5th 2023 to fill in any gaps in your National Insurance records. Because of the extended voluntary National Insurance deadline, you now have until July 31st to fill in any gaps dating back to 2006. This agreement is only accessible to individuals claiming the new state pension and reaching the state pension age on or after 6 April 2016
In 2016, a new state pension system was introduced, whereby after July 31st 2023, it will only be possible to top up gaps for the previous six tax years How could this affect you? Well, you could lose the ability to make up for 10 or 11 years of NI gaps
For anyone between the ages of 45 and 70, take the necessary steps now to check if you are missing any National Insurance (NI) contributions If you qualify and have the means, paying to fill those gaps could give you thousands of pounds more in your retirement state pension.
The cost for each ‘missing year ’ will vary.
You can view your record online by clicking on the follo link: https://www.gov.uk/check-national-insurance-re
Among other things, the Government Gateway will info you whether you can pay any voluntary contributions to any gaps and how much it will cost to fill each gap
Client X
Retired in April 2024 Had 6 years to contribute before 05/04/28 Forecast £183.62 a
If you have gaps in your national insurance (NI) record that prevent you from receiving the full state pension, it is worth checking if you can plug them at no extra cost.
There could be several reasons why you have gaps in your NI record
For instance:
· You were unemployed and not claiming benefits.
· You were employed, but your earnings were too low.
· You were living or working outside of the UK.
In these instances, you may be eligible for National Insurance credits.
To check whether you can claim any credits, please click here: https://www.gov.uk/nationalinsurance-credits/eligibility
Although it ended in April 2016, it enabled individuals paying into a workplace or private pension to pay less national insurance towards their additional state pension in exchange for a higher private pension
If you reach the State Pension age from April 6th, 2016, the State Pension you receive may be reduced due to the lower National Insurance contributions you and your employer made when you were contracted out. Nevertheless, your workplace pension will provide you with added income. You may also be able to increase your State Pension by working, claiming National Insurance credits, or contributing to it voluntarily
Because of the differences, most employees impacted by the new scheme will receive more State Pension. You will no longer get the 1.4% National Insurance rebate starting in April 2016. You will have to pay the standard rate for National Insurance contributions.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances
We are all living longer lives and spending a larger proportion of our time in retirement, meaning it is essential to make your money work as hard as you to ensure you can live your financial future to the fullest.
Take that first step by visiting the Government website to see whether you can boost your state pension today.
If you need help mapping out your retirement plan, get in touch and see how we can assist you.
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