State Pension top-ups surge during last year as people boost retirement payments before upcoming deadline
18.12.2023 - 09:53
/ dailyrecord.co.uk
New figures published by the UK Government show that at the end of March, the number of people making voluntary National Insurance (NI) contributions to top-up missing or incomplete years on their State Pension surged by 85 per cent over the 2022/23 financial year.
The National Insurance Fund Accounts indicate that £391,973,000 worth of Class 3 NI contributions were made for the year ending March 31, compared to £212,311,000 paid in the previous year.
Class 3 contributions are voluntary contributions that can be used to fill gaps in NI records which in turn boost State Pension payments in retirement, ensuring someone receives full entitlement. The latest figures from the Department for Work and Pensions (DWP) show there are now 12.6 million people receiving State Pension payments, including 1.1 million living abroad and 992,052 in Scotland.
Of that overall total, some 9.7 million people are receiving Basic State Pension payments of up to £156.20 each week, while 2.9 million are on the New State Pension, which is worth up to £203.85 each week.
You can usually fill gaps in your NI record going back six tax years, however, there is currently an opportunity for some people to fill gaps going back to 2006. The deadline for making these extra top ups was extended to April 2025 after a surge in interest overwhelmed DWP helplines earlier this year.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown: “A quick glance at these accounts shows why DWP helplines went into meltdown earlier this year as Class 3 contributions leapt an incredible 85 per cent. As the deadline ticked down for people racing to boost their State Pension with voluntary credits the phonelines buckled causing the DWP to extend the deadline to