People planning their retirement finances have been urged to make sure they understand the rules around how to get the maximum state pension.
Mike Ambery, retirement savings director at Standard Life, part of Phoenix Group, said: “We welcome the launch of the Government’s new online National Insurance contribution checking service and encourage everyone to check their contribution status, and to get a state pension forecast, as the payment is a vital source of income in retirement for millions.
“Yet many people are unaware that to receive the maximum payment they’ll need 35 years National Insurance contributions.”
The call to action comes after a new HMRC tool launched to enable people to check if they can increase their state pension payments by paying National Insurance (NI) contributions.
Now is a great time to check if you have any gaps in your NI record as you can currently pay for contributions over an extended period, as far back as April 2025.
Mr Ambery said: “Paying voluntary National Insurance contributions could make a massive difference to people’s futures.
“Based on the 2024/25 rates, buying a full National Insurance year could boost the new State Pension by £303 a year. Someone starting to claim at 66 and living for another 20 years could see their State Pension increase by around £6,060 as a result of making the additional payment.
“However, it’s very important people consider their own situations, as there could be many reasons why voluntary National Insurance contributions might not suit people’s circumstances, such as if they have sufficient time to make up the required number of years. The new online service should help people quickly and easily see if it’s the right decision to make.”
A person typically needs 35 years of contributions to get the full new state pension and 30 years of contributions to get the full basic state pension.
State pension payments increased 8.5 percent this month, with the full new basic state pension now paying £169.50 a week while the full new state pension is £221.20 a week.
However, experts at wealth firm True Potential recently told Express.co.uk that people should make sure they have other finances available for their retirement.
Neil Rayner, head of Advice, said: “It’s essential to complement your state pension with diverse income sources built from a robust retirement strategy that includes personal pensions, stocks and shares ISAs, and other savings vehicles to ensure a comfortable and financially secure retirement.”
He further explained the type of people for whom it may not be appropriate to pay to fill in gaps in their National Insurance record.
He said: “Those who may have other substantial retirement plans or financial constraints might prioritise differently.
“Yes, people should consider topping up their NI contributions if feasible, but it’s equally important to ensure they have multiple streams of retirement income, including personal pensions.
“Consulting with a financial adviser is advisable for anyone curious about the best approach to take. This helps ensure a well-rounded retirement strategy that adjusts to personal financial situations and goals.”
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