Check 1: Do You Have Missing National Insurance Years?
Martin Lewis, the consumer expert, advises anyone under 73 to check if they have missing National Insurance (NI) years. These gaps in your record could potentially cost you thousands of pounds in state pension payments. To fix this, you can pay to fill in the missing years and secure your full state pension.
Check 2: Can You Plug Your NI Gaps for Free?
Parents who claim child benefit and have a child under 12 automatically receive National Insurance (NI) credits. These credits can be used to fill in your NI record and prevent any gaps. If you don't need the credits, your family members may be eligible to claim them. Additionally, you should check if you qualify for carer's credit if you care for someone for at least 20 hours a week.
How to Top Up National Insurance Contributions and How Much You Can Get
If you can't fill the gaps for free, you have the option to buy back missing years by making voluntary contributions. However, this comes at a cost. The price for buying one year of contributions is £824.20, which can boost your state pension by around £275 per year. It's important to get a pension forecast and consult the Government's Future Pension Centre before making voluntary contributions to ensure it will actually benefit your state pension.
Remember to check the government website for a full list of eligibility criteria and circumstances in which you can claim credits or receive automatic benefits.
For more information on boosting your retirement pot, check out our list of four recommended methods and two to avoid. And if you're curious about the reasons you might have gaps in your NI record, we've got you covered with the full list.
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