Increase Your State Pension with the UK Government’s New Online Tool
The UK government has introduced a new online tool designed to help individuals check and fill gaps in their National Insurance (NI) record, thereby enhancing their state pension.
Introducing the 'Check Your State Pension Forecast' Tool
Launched by HMRC and the Department for Work and Pensions (DWP), the 'Check Your State Pension Forecast' tool allows people to easily increase their state pension by identifying and filling gaps in their NI record.
How Does the New Online Service Work?
This is accessible via the HMRC website and app, the new service provides users with detailed information on how much their state pension could increase and the cost of voluntary NI contributions needed to achieve this. This therefore means you can select specific years to fill gaps and make contributions accordingly. Making it a lot easier to determine if you are missing any years or need to fill in the gaps.
To use the service, log in using your personal tax account credentials or register for an online HMRC account via GOV.UK. Once you’ve made the voluntary NI contributions, your record will be updated accordingly.
Streamlined Process for Boosting State Pension Contributions
This tool simplifies the process of increasing state pension contributions, eliminating the previous need to call both the DWP and HMRC. For any pre-service questions, it's advisable to contact the Future Pension Centre if you’re below state pension age.
Important Deadlines and Limitations
To fill gaps in your NI record between 6 April 2006 and 5 April 2018, contributions must be made by 5 April 2025. After this deadline, you can only make voluntary NI contributions for the past six tax years.
While most individuals can use this new service, there are exceptions. The service is not available for those already receiving the state pension, wanting to fill NI gaps from self-employment, or living overseas and seeking to cover gaps while working abroad.
Qualifying for the New State Pension
To qualify for the state pension, you need at least 10 qualifying years on your NI record, with 35 qualifying years required for the full amount, currently £221.20 per week (around £11,500 per year). The state pension increases in line with the triple lock system, which ensures it rises by the highest of either 2.5%, average earnings, or inflation (as measured by the Consumer Prices Index).
Plan for Your Retirement
While the state pension provides a foundation for retirement income, it may not be sufficient on its own. Therefore, it’s essential to build personal pensions throughout your career so you are not fully relying on this. For personalised retirement planning and financial advice on boosting your pension pots, Find My Adviser can connect you with a qualified financial adviser quickly and easily.
For more information and personalised advice, book a one on one meeting with one of our financial experts today. Book in now to speak with an adviser
Disclaimer: This blog post is for informational purposes and should not be considered financial advice. Always consult a financial adviser for personalised guidance.
