DWP State Pension boost as new online tool helps people get bigger pension pot
The government has launched a new online tool which will make it easier for people to fill in any gaps in their national insurance (NI) record and subsequently top-up their state pension pot.
The service, launched by HMRC and DWP, will show customers by how much their state pension could increase and details of the voluntary NI contributions they would need to pay to achieve this. It allows most people under state pension age to view gaps in their NI record and pay voluntary contributions to fill those gaps, if it will benefit them.
Anyone who has NI gaps in some of their tax years can use the service to choose which years they would like to fill. They can then pay securely through the service and will receive confirmation that their payment has been received and that their NI record will be updated.
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Those who are eligible have until April 5 2025 to pay voluntary contributions to make up gaps in their NI record between April 6 2006 and April 5 2018. From April 6 2025, people will only be able to pay voluntary contributions for the previous six tax years, in line with normal time limits.
Last year, the government extended the deadline to pay voluntary NI contributions to April 5 2025 for those affected by new state pension transitional arrangements. This covers tax years from April 6 2006 to April 5 2018. The extended deadline means that people now have more time to properly consider whether paying voluntary contributions is right for them and ensures no-one is missing out on the possibility of increasing their state pension.
Nigel Huddleston, Financial Secretary to the Treasury, said: “Having peace of mind when planning for retirement is crucial to ensure people can enjoy later life. That’s why HMRC has launched this new online service today, making a real difference for thousands of pensioners in their retirement while providing certainty to those in their middle years and those still planning ahead.”
Paying voluntary contributions will not always increase the state pension but everyone can use the new service to check whether they could be better off in retirement before making any voluntary NI payments.
Customers can access the Check your State Pension forecast via GOV.UK or via the HMRC app . Customers will need to login to the new digital service using their Personal Tax Account login details. Those without an online HMRC account can register on GOV.UK .
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