State pension payments could be boosted thanks to HMRC tool - what you need to know before deadline
Will Hollis speaks to pensioners about how they're feeling about the loss of the Winter Fuel Payment
GB NEWS
HM Revenue and Customs (HMRC) is urging Britons to take advantage of a useful tool that could boost state pension payments before it is too late.
The tax authority revealed that more than 10,000 payments totalling £12.5million have been made through a new digital service to boost payments since April.
The online tool allows people to top up their National Insurance records to maximise their pension payments in retirement.
Analysis of the service shows most customers have topped up one year of their National Insurance record.
With less than six months remaining before a crucial deadline, HMRC is preparing for an expected surge in applications.
The Treasury has implemented new measures to manage the anticipated demand, including resource deployment and enhanced digital services.
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Peoples' state pensions could be bolstered thanks to a HMRC tool
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In 2023, the Government extended the deadline for voluntary National Insurance contributions to April 5, 2025.
This extension applies specifically to those affected by new state pension transitional arrangements, covering tax years from April 6, 2006, to April 5, 2018.
Men born after April 6, 1951, and women born after April 6, 1953, are eligible to make these voluntary contributions to enhance their new state pension.
Typically, individuals can only make voluntary contributions for the previous six tax years.
After the April 2025 deadline passes, the usual six-tax year limit will be reinstated. Treasury minister James Murray confirmed that new measures have been implemented since the deadline extension to support customers.
The average online payment made through the service stands at £1,193, according to HMRC data.
Some 51 per cent of customers have chosen to top up just one year of their National Insurance record.
Pensions Minister Emma Reynolds has urged those approaching retirement to take action. "We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement," she said.
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GETTY"That's why I urge everyone to check if they could benefit by filling gaps before the deadline passes. Using our online tool means only a few clicks could make a huge difference to your future." Before making voluntary contributions, experts advise checking with the Department for Work and Pensions (DWP).
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, warns: "It is hugely important that you speak to DWP before parting with any money for voluntary National Insurance credits as they can confirm if you will definitely benefit from buying them."
To check your State Pension forecast, visit the 'Check your State Pension forecast' page on GOV.UK. The full basic state pension currently stands at £169.50 per week, requiring 30 years of NI contributions.
For the full new state pension of £221.20 per week, 35 years of contributions are typically needed. Each year purchased gives you 1/35th of a year's State pension, with a full extra year costing around £800.
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