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HMRC: 10,000 boost State Pension with online payments

ended 07. October 2024

New data published this morning by HMRC has shown that more than 10,000 payments worth £12.5 million have been made through the new digital service to boost people’s State Pension since it launched in April 2024. The Government have today warned that people have until 5 April 2025 to maximise their State Pension by making voluntary National Insurance contributions to fill any gaps in their NI record between 6 April 2006 and 5 April 2018.

After the 5 April 2025 deadline, people will only be able to make voluntary contributions for the previous 6 tax years, in line with normal time limits. Since its launch in April, 3.7 million people have used the online checking tool on GOV.UK to view their State Pension forecast. Emma Reynolds, Minister for Pensions, said: "We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement. 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.

Newspage asked pension experts for their thoughts, below.

4 responses from the Newspage community

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Anita WrightVerified
Independent Financial Adviser at Ribble Wealth Management
For many, the State Pension remains the only guaranteed income source that is linked to inflation through the triple lock, making it a vital part of retirement security. If anyone has a gap in their NI record, paying voluntary contributions could significantly boost their future income. For example, paying £907.40 for a year’s worth of contributions in 2024/25 will secure an additional £328.636 annually for life, indexed to inflation. Put another way, within three years of the person’s State pension income commencing, the investment will have been fully returned. While the State Pension alone may not cover all retirement needs, it can still form a crucial part of the overall plan. Some may prefer to invest their money elsewhere, especially if they have concerns about health and longevity, since the State Pension offers no inheritance benefits under the new rules. However, for those seeking guaranteed income that rises with inflation, filling NI gaps should be strongly considered.
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Gabriel McKeownVerified
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
While the forthcoming Budget has cast a shadow of uncertainty over the pension landscape, a ray of hope has emerged for savers. The government's digital pension initiative has unexpectedly struck gold, unleashing a tsunami of savings with over 10,000 payments pouring through the system as those seeking to supercharge their State Pension. This pension bonanza offers a glimmer of positivity and signals a shift in public proactivity regarding retirement planning. This presents a unique opportunity for individuals to bolster their retirement funds with the ability to retroactively fill NI gaps. This could increase State Pension entitlements significantly, offering a rare chance to enhance long-term financial security. The decision to extend the deadline to April 2025 provides a crucial lifeline for those who may have overlooked this option. However, the clock is ticking, and for millions of Britons, a few clicks today could be the difference between retiring with a whimper or a roar.
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Riz MalikVerified
Independent Financial Adviser at R3 Wealth
It is important to check your National Insurance records and plug any gaps if possible before the deadline. With the Budget looming, this is one area where a small amount of time could have big benefits when you come to retire.
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David BelleVerified
Founder and Trader at Fink Money
People need to do everything possible to ensure they have the best retirement possible so this is positive news to see. Right now is the best time to buy low coupon gilts. I’d have done this instead, but that’s me understanding that bonds aren’t cap gains taxable and the low coupon element reduces any tax burden. If you look at the 2061 0.5% bond, this makes most sense as we enter the rate cutting cycle for people to bolster their pensions pots.