Planning to collect your state pension? Check your NI record while you still have time

If you intend to claim the British state pension, then you should review your National Insurance (NI) record before 5 April 2023. On that date, you will lose an important option – the ability to “fill in” any gaps on your NI record. Your state pension depends on this record, so it is vital that you don’t miss this important opportunity.

Are you entitled to the British state pension?

For those who retire on or after 6 April 2016 in order to qualify for the maximum “new state pension,” 35 years of valid NI contributions are required.

To get any portion of the new state pension, you must have contributed for a minimum of 10 years. Although, if your National Insurance record began before 6 April 2016, the requisite number of years of contributions may increase.

What if your NI record is insufficient?

If you reach the age for state pension but have not contributed enough, there is a chance you will not be able to receive the whole amount – and if your NI contributions are low enough, you may not receive anything! You should consider making optional NI payments to increase your contribution history – but remember, there is a cut off on your ability to do this. If you do decide to pursue this path, you need to make sure you seek professional financial advice.

What is the cut-off date for voluntary contributions?

The current extended window allows people to make voluntary contributions to fill any gaps during the last 16 years. After 5 April 2023 voluntary contributions can only be made for the previous 6 years. Thus, you will only be allowed to make contributions dating back to the 2017/18 tax year during the 2023/2024 tax year.

Do you know what’s on your NI record?

It is essential to review your National Insurance record before 5 April 2023 to discover any missing NI contributions on your record. You should also verify that your record contains NI payments paid through PAYE or Self Assessment, as well as NI credits earned. If there are errors that need to be corrected, you must immediately notify HMRC.

You can access your NI records via the Government Gateway (https://www.gov.uk/log-in-register-hmrc-online-services)

If you need any further advice, or you need help to check your NI record before 5 April 2023, contact JW Hinks on 0121 456 0190. Our expert tax team will ensure you take every action possible to maximise your state pension.