People have been given a six-month deadline to fill and gaps in their National Insurance - here's what you need to know
A six-month deadline has been given to people to fill any gaps in their National Insurance (NI) records in order to maximise the amount they can claim on their state pension.
More than 10,000 payments worth £12.5m have already been made through a new digital service launched in April to boost people's state pensions, HM Revenue & Customs (HMRC) has revealed.
People have until 5 April 2025 to maximise their state pension by making voluntary contributions to fill any gaps in their NI record between 6 April 2006 and 5 April 2018.
The extended deadline has allowed people more time to consider what is right for them and make their contributions.
Urging people to check for gaps in their record before it's too late, pensions minister Emma Reynolds said: "We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement."
Here, Yahoo News explains how to check your National Insurance record and what you need to do to ensure you can receive your maximum state pension.
You can check your National Insurance record here on the UK government's website.
This online tool will show you what you've paid in NI contributions up to the start of the current tax year (beginning 6 April 2024) and if you've received any NI credits - which count towards your contributions if you are not working, for example, if you are ill or unemployed.
It will also show you if any gaps in contributions or credits mean some years do not count towards your state pension, and how the amount you can claim will change if you start making voluntary contributions - which we'll come to later.
People typically need at least 10 qualifying years of NI contributions to receive any state pension at all and at least 35 years to receive the full new state pension.
Although, as Alice Haine, personal finance analyst at online investment platform Bestinvest by Evelyn Partners points out, they do not need to be consecutive years.
"Plugging gaps can be quite an expensive process, so it is important to assess whether you actually need to buy back any missing years," she adds.
"This will depend on how many more years you plan to work, and whether you are eligible for NI tax credits, which fill the gaps, such as those who have been sick, were unemployed or took time out to raise a family or care for elderly relations."
The government says people can have gaps in their record because they were employed but had low earnings, were unemployed without claiming benefits, were self-employed but not making contributions due to low profits or were living and working outside the UK.
If you don't have 30 qualifying years on your National Insurance record, you can make voluntary contributions to plug the gaps.
Voluntary contributions do not always increase your State Pension, for example if you were contracted out of the pension by your employer under pre-2016 regulations.
You should check your state pension forecast online to see what kind of a difference voluntary contributions will make and can also contact the Future Pension Centre for guidance.
If you're living or working abroad and are nearing state pension age, you can contact the International Pension Centre for advice.
To make voluntary contributions, you will have to pay what are known as Class 2 or Class 3 contributions. The former is typically paid by self-employed people, while the latter is voluntary paid by people who want to fill gaps in their record.
For Class 2 contributions, the cost to fill these gaps is £3.45 per week, which amounts to £179.40 for the year, based on current rates. For Class 3, people will have to pay £17.45 a week, which works out to £907.40 annually.
Whether you pay Class 2 or 3 will depend on your employment status and if you ever lived and worked abroad, according to MoneyHelper.
If you want to make a voluntary contribution, you can call HMRC's National Insurance office on 0300 200 3500 and ask for an 18-digit reference number, before paying online here for Class 2 and here for Class 3.
If you are employed, you pay Class 1 National Insurance contributions, which under the current rates, is 8% if you are paid £1,048 to £4,189 a month, and an additional 2% if you are paid more than £4,189 per month.
You will pay less if you are a married woman or widow with a valid "certificate of election", or if you are deferring your National Insurance because you have more than one job.
Self-employed people will pay Class 4 National Insurance, depending on your profits, with most people paying through their self-assessments.
If your profits are £6,725 or more a year, Class 2 contributions are treated as having been paid to protect your National Insurance record, meaning you don't actually have to make these payments yourself.
However, if your profits are more than £12,570 a year, you must pay Class 4 contributions, which are currently 6% on profits of £12,570 up to £50,270 and 2% on profits over £50,270.
If your profits are less than £6,725, you do not have to pay anything but you can choose to pay voluntary Class 2 contributions. Again, check your state pension forecast to see if this is worth it.
If you think a mistake has been made on your National Insurance record, you can call the National Insurance Contributions Office on 0300 200 3500.
Alternatively, you can write a letter addressed to: HMRC National Insurance Contributions and Employer Office, HM Revenue and Customs, BX9 1AN.
Citizens Advice says that in your letter, you should explain why you think your record is wrong and include copies of any evidence you have.
Evidence could include things like payslips or a P60 that show the National Insurance you've paid.
It is best to post the letter at the Post Office and ask for proof of postage in case you are asked to prove when you sent the letter, Citizens Advice adds.
Once you reach 35 years of National Insurance contributions, you do not stop paying, nor will it entitle you to a bigger state pension, according to Interactive Investor.
It says this is because contributions paid by today's labour force go towards the pensions of today's retirees.
Rather than the money you put towards National Insurance being kept in a pot ready for you to claim when you hit retirement age, it is really more of a tax - although it is not described as such - the service adds.
However, Money-mentor.org says that self-employed people who have paid Class 2 contributions for 35 years may be eligible for the Small Profits Threshold (SPT), which means you won't have to pay any more if their profits are below £6,725.
They may still need to pay Class 4 contributions, however, which are based on self-employed profits and are payable until state pension age.