How to check your State Pension forecast

If you discover gaps in your National Insurance (NI) record through your state pension forecast, here’s how you can proceed to address the issue:

Steps to Check and Address Gaps in Your NI Record:

1.??????? Review Your State Pension Forecast

Visit the UK Government's website and use the State Pension Forecast tool. This will show:

·????? How much state pension are you currently projected to receive?

·????? Whether there are gaps in your NI record.

·????? The specific years with missing contributions.

2.??????? Check Your NI Record Details

·????? Use the National Insurance record tool to see detailed information about your NI contributions, including which years are incomplete.

3.??????? Determine Eligibility to Fill Gaps

·????? If you have missing years, you can usually fill them by making voluntary NI contributions. Before paying, ensure that you are eligible and that making additional contributions will boost your state pension.

·????? Generally, you can make contributions for the past six tax years, though some people have extended deadlines (e.g. until April 2025 for certain tax years due to transitional rules).

4.??????? Contact HMRC for Guidance

To confirm your missing years or discuss how to top up, you can contact the National Insurance helpline:

·????? Phone: 0300 200 3500

·????? Opening hours: Monday to Friday, 8am to 6pm.

·????? You can also write to HMRC or use their online messaging service if you’re registered for a Personal Tax Account.

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5.??????? Make Voluntary Contributions

·????? After confirming the gaps and their impact on your state pension, you can make Class 3 voluntary NI contributions to cover the shortfall.

·????? The cost of Class 3 contributions for the 2024/2025 tax year is ￡17.45 per week (though rates can vary year to year so please do your research here).

·????? You can make payments via bank transfer, cheque, or a direct debit arrangement. HMRC will provide detailed payment instructions.

6.??????? Consult a Financial Adviser (Optional)

·????? If you’re unsure about the benefits of topping up or how it impacts your retirement planning, you can consult a financial adviser for tailored advice.

Important Notes:

• Full State Pension Requirements: To qualify for the full state pension, you need 35 qualifying years of NI contributions.
• Partial Pension Eligibility: You need at least 10 qualifying years to receive any state pension.
• Credits for Missing Years: Some gaps may be filled automatically if you’re eligible for NI credits (e.g., for periods of unemployment, caring responsibilities, or illness).
• Paying post state pension age: You can continue to pay for missed years after your state pension has started, allowing you to fill years up to the final relevant year. Once the timeframe has passed for this, you will no longer be able to do this. The increase in pension will only apply once the payment has been received therefore if you would like full state pension at the outset, the top ups must be done prior to your state pension age.

By following these steps, you can make informed decisions about securing your full state pension entitlement.

Sarah Hogan

Chartered Financial Planner

www.kbafinancial.com