The deadline for filling historic gaps in National Insurance (NI) contributions is fast approaching. Right now, individuals can make up for missed contributions dating back to 2006, but from April 5, 2025, the rules will change. After this date, you’ll only be able to backfill contributions from the previous six years.

With the clock ticking, is it worth making a voluntary contribution to boost your state pension entitlement? The answer depends on your circumstances, but for many, it could be a worthwhile investment.

How the State Pension Works

The state pension provides retirees with a guaranteed weekly income, but the amount you receive depends on your NI contribution history.

To qualify for the full new state pension, you need 35 years of NI contributions. If you have fewer than this, your pension will be reduced. Those with fewer than 10 years on record won’t qualify at all.

Gaps in your NI record can occur for various reasons, including:

• Periods of unemployment without claiming benefits that include NI credits
• Career breaks, such as maternity or caring responsibilities
• Working abroad without paying UK NI contributions
• Being self-employed but not paying voluntary contributions

The government allows you to check your state pension forecast online, which shows whether you have gaps and whether voluntary top-ups could increase your future payments.

Currently, the full new state pension is £221.20 per week, or approximately £11,502 per year. If your forecast falls short of this, a top-up could help secure a higher income in retirement.

Should You Top Up?

Deciding whether to make additional NI contributions depends on several factors:

• How close you are to state pension age – If retirement is just a few years away, topping up could be a cost-effective way to increase your guaranteed income.
• The size of the gaps in your NI record – Some people may only need a few extra years to qualify for a much bigger pension.
• Your financial situation – Each additional year of contributions costs around £824 (for 2024-25). If this increases your pension by £302 a year, you’d break even in less than three years of retirement.
• Government policy changes – While the ‘triple lock’ remains in place for now, there’s always uncertainty about future state pension reforms.

With more people looking to make voluntary contributions before the deadline, the government has introduced a temporary extension to process payments. However, the sooner you act, the better.

Future Considerations

The state pension age is currently 66, but it is set to rise to 67 by 2028 and could increase further in the future. Some younger workers may question whether they’ll ever fully benefit from today’s pension system.

Pensions Minister Torsten Bell has confirmed that there are no plans for means-testing, and the state pension will continue to rise under the triple lock during the current Parliament. However, with ongoing debates about affordability, future governments may review eligibility criteria.

It’s also important to understand that the state pension isn’t funded by your own NI contributions. Instead, it operates as a pay-as-you-go system, meaning today’s workers fund current retirees through general taxation.

To top up or not to top up?

For many, topping up NI contributions before the deadline is a smart move – especially if it means securing a higher guaranteed income for life. But it’s not a one-size-fits-all decision.

Checking your state pension forecast and seeking financial advice can help you determine whether making a top-up is the right option for you.