What You Need to Know About the NI Top Up Provision
To be eligible to receive the full UK State Pension, you typically must have made at least 35 years’ worth of National Insurance (NI) contributions. If you contributed for between 10 and 35 years, you may be eligible to a prorated pension amount. If you haven’t met the 35-year contribution minimum and hope to receive the maximum State Pension amount, you may be able to fill gaps in your record by making voluntary NI contributions under the NI top up provision. Read on for what you need to know.
Voluntary contribution deadline
The UK government has extended the deadline to make voluntary NI contributions for missing years between April 6, 2006, and April 5, 2018. You now have until April 5, 2025, to fill in gaps for these years. After this date, you’ll only be able to fill in gaps for the previous six tax years.
Steps to identify and fill NI gaps
The following steps can help ensure your NI contributions are credited correctly:
- Check your State Pension forecast. Access the UK government’s online tool to view your State Pension forecast and NI record. Your State Pension summary includes:
- The amount of State Pension you’re on track to receive
- Your State Pension age
- Whether you have any missing NI contributions
- Your eligibility to make voluntary contributions
- How much NI voluntary contributions would cost you and how much they could increase your State Pension
- Determine eligibility for NI credits. Before making NI contributions, verify whether you’re eligible for any free alternatives, which may include the following:
- Free NI credits – For example, you may be eligible for credits if you were on maternity or paternity leave, disabled for a period of time or caring for a sick or disabled person
- Transfer credits from child benefit – If you have a child under the age of 12, you may be eligible to transfer your child’s credits to you if the person currently claiming those credits is working and making contributions anyway.
- Pension credit – If you’ve reached State Pension age, your pension credit may top off your State Pension for free. This typically applies to individuals who have no income other than the State Pension.
- Decide whether voluntary NI contributions make sense for you. Access your NI record at gov.uk to calculate how much you’d need to contribute to fill any State Pension gaps. The idea of making voluntary contributions is that you’re able to pay a small amount today in exchange for more State Pension benefits over the long term. However, it can take several years to recoup your contributions, which is why it’s important to consider how long you may receive State Pension payments before you die. Based on 2024-2025 rates, each missing year costs approximately £907.40 and can increase your annual State Pension by up to £328.64. That means you could recoup your investment after about three years of retirement.
How to make voluntary contributions
If you determine it makes sense to boost your NI contributions, you can do so online by accessing your personal tax account on the HMRC website. Alternatively, you can contact HMRC directly to establish payments via mail or phone. You’ll need to provide your NI number and details of the gaps you’re hoping to fill.
Types of voluntary contributions
When topping off your UK State Pension, it’s important to understand the difference between Class 2 and Class 3 voluntary NI contributions, as they have different eligibility requirements and costs.
- Class 2 voluntary contributions – These contributions typically apply to self-employed individuals who have low earnings or are living abroad. Expats who previously worked in the United Kingdom and wish to maintain eligibility for State Pension benefits may also qualify.
- Cost –Class 2 contributions are less expensive than Class 3 contributions. As of 2023-2024, Class 2 contributions cost £3.45 per week (£179.40 per year).
- Benefits – Class 2 contributions qualify individuals for full State Pension benefits at a significantly lower cost than Class 3 contributions.
- Class 3 voluntary contributions – These contributions are for individuals who aren’t eligible for Class 2 contributions but still want to top up their NI record. They typically apply to those who were previously unemployed but weren’t claiming benefits, had low income or missed contributions due to time spent abroad.
- Cost – Class 3 contributions are more expensive than Class 2 contributions. As of 2023-2024, Class 3 contributions cost £17.45 per week (£907.40 per year).
- Benefits – Class 3 contributions help those with gaps in their NI record qualify for full State Pension benefits. If you qualify, Class 2 contributions are a more cost-effective way to boost your pension. However, if you’re not eligible for Class 2, Class 3 contributions are the only voluntary option available to increase your State Pension amount.
