State pension boost could save Britons as payments fall to under £100 a week - but 'clock is ticking'
Some pensioners are living on less than £100 per week, according to new analysis
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Britons are being urged to take advantage of a state pension boost as 150,000 pensioners face living on less than £100 a week.
Sarah Pennells, a consumer finance specialist at Royal London, is calling on people to fill the gaps in their National Insurance record as the "clock is ticking".
Workers need to have 35 years of National Insurance contributions under their belt to qualify for the full, new state pension which is currently sitting at £221.20 a week.
This is for those who turned the state pension age by April 6, 2016, while those who reached this threshold are on the basic state pension. The full amount of this payment is £169.50 weekly.
Royal London's research shows that around 150,000 pensioners receive under £100 a week. This shortfall is often due to gaps in National Insurance records or having been "contracted out" in the past.
Many people end up leaving the workforce and not making these contributions for a variety of reasons, including illness and looking after family members.
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Pennells shared that there are ways for people to make up the difference and bolster their annual payments.
However, there is an important deadline Britons need to have in mind if they want to pick up contributions dating back over a specific period of time.
She explained: "You may be entitled to free National Insurance credits if you're caring for a child under the age of 12 by registering for Child Benefit, or if you're caring for someone else who's getting certain benefits.
"In that case, you may be able to top up your National Insurance record for free. But for those who can't, it's important not to miss this deadline of April 5, 2025."
After this date, those approaching retirement will only be able to backdate National Insurance contributions for six years.
"This deadline has already been extended twice, so this may be the last chance. The clock is ticking," Pennells said
To make voluntary National Insurance contributions, individuals can contact HM Revenue and Customs (HMRC) directly. These payments can significantly boost someone's state pension, potentially increasing it by hundreds of pounds annually.
The process involves checking for gaps in your National Insurance record and deciding which years to cover. Each year of contributions can add up to 1/35th of the full state pension to your weekly payment.
Pension savers should be aware that the cost of voluntary contributions varies depending on the tax year being covered. Class 3 contributions for the 2023/24 tax year are £17.45 per week.
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Those approaching retirement are encouraged to seek guidance on how to boost their pension income
GETTYA DWP spokesperson said: “Ensuring a better deal for the pensioners of today and tomorrow is a priority for this Government.
“There are a variety of reasons why some pensioners have a lower state pension – including contracting out and paying less national insurance contributions – which is why we encourage those on the lowest incomes to claim for pension credit, worth on average £3,900 per year.
“Through our commitment to protect the triple lock over 12 million pensioners will benefit, with many expected to see their state pension increase by around a thousand pounds over the next five years.”