28/03/25
Investing in your personal future is something that should be on everyone’s mind. Thinking about retiring and enjoying the autumn years of your life worry free is the goal for many, especially as you approach an age where you’re thinking more and more about hanging up the gloves.
If you are a man born after 1951 or a woman born after 1953, you have a unique opportunity to boost your pension earnings – but the window to do so is fast closing!
You may be aware that it is possible for you to pay back National Insurance contributions for years you missed in the past. At the moment, you can pay back any years from 2006 to now but as of April 6th 2025 this changes, and you will only be able to go back as far as 2019.
How does this affect you?
Each qualifying year added to your National Insurance contribution increases your state pension. This can allow you to reach the full amount of £221.20 per week.
With gaps in your National Insurance record, you will receive less than this full amount. The good news is that, for the next few weeks at least, you have the chance to fully fill these gaps, but after April 5th, you will lose the ability to bring your contributions up to date and fill the gaps in your National Insurance pre-2019.
Why might you have gaps in your National Insurance?
You might have gaps in your National Insurance record and not even know it. Many events can cause you to have gaps in your record. These include:
- Low income
- Career breaks
- Time abroad
- Redundancy
- Unemployment
- Incorrectly claimed credit
If you have experienced any of these and you fit into the previously mentioned criteria you could back pay your National Insurance, fill in the gaps, and earn more during your pension-claiming years.
According to money saving expert Martin Lewis, ‘If a full NI year usually costs you £824 and adds up to £328 each year to your pre-tax State Pension, it’s worth it as long as you live at least three years after getting your pension (or three years after you top up, if you’re already getting it).’
Investing in your future
Incredible as it sounds, paying the money and making sure you get the full pension amount, although it may seem like an expensive endeavour, will be worth over eight times the original amount.
This is based on someone living decades past retirement age, which the majority of us will do, thanks to modern living standards and better healthcare.
The increase could cumulatively net you an extra £50,000 over your retirement, all by filling in the gaps to back pay your National Insurance.
If you have the spare funds available to pay back your National Insurance, it will top up your pension and give you additional income that leads to a significant increase over time.
It is also possible to make up any gaps in your record with National Insurance credits. These credits fill the gaps missed in your contributions by life events such as:
- Jury service
- Childcare
- Statutory sick pay
- Being on Jobseekers Allowance
- Being on Maternity
- Carer Support payments
You can check your eligibility online here.
How can you pay back your National Insurance?
There are many ways for you to pay back the money and close the gap in your record. You can pay online directly, by direct debit, make a bank transfer, or pay by cheque.
The best thing to do is check whether you have a gap in your record here, and get in contact with HMRC should you have gaps, and you are in a position to pay the money.
The final word
Remember, each year of your National Insurance contribution increases your state pension up to £6.32 per week. This might not sound like much taken on its own, but these incremental increases soon add up and could be the difference between being able to pay the bills and not.
This is an entirely voluntary process. You don’t have to pay back the money to give yourself a continuous National Insurance record. If you don’t however, you will be missing out on pension payments that you are entitled to.
With the deadline fast approaching, act now, check your eligibility, and get in contact with HMRC to ensure you gain the maximum pension payments you deserve when you retire.
If you have any questions for our specialist advisers, don’t hesitate to contact us.
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