Thread: For Brits with gaps in their state pension years

If you have gaps in your contribution history between 2006 and 2016 you have a unique chance to fill them by 31st July this year - only!!!


Deadline to plug state pension gaps and unlock future cash flows is now July 31

A rare opportunity to boost state pension payments has been extended, after Telegraph Money revealed that chaos on Government phone lines risked thousands missing out.


People without a full National Insurance record do not receive the full state pension, but can pay voluntary contributions to rectify this.


Normally workers can only fill gaps in their NI history dating back six years, but a change to the state pension in 2016 created a longer concession which allows workers to make catch-up payments for the tax years from 2006-07 to 2015-16.


This window was meant to close at the end of the tax year on April 5.


The Government directs people who think they might benefit from topping up to first check whether it will be worth it. However, this can only be done on the phone, not online.


The deadline has now been extended by 16 weeks to 31 July – but with the phone lines still under severe strain, the Government is warning callers not to leave it until the last minute.


Graham Amos, a 65-year-old Telegraph reader from Cornwall, has called the Future Pension Centre 19 times since February, and has failed to get through to staff each time. His current state pension forecast is £142 a week, but the official website says that he could boost this to £179.


Over the course of 20 years, this would add up to missed income of almost £40,000, without taking into account any increase in payments in line with inflation, earnings or 2.5pc, as the Government’s triple lock policy dictates.


Someone who topped up all the gaps from 2006-07 to 2015-16 would gain an extra £52.90 a week or £2,750 a year, or around £55,000 extra in total, over a 20-year retirement.


Mr Amos said: “The real concern is that you will not get the money that you are due, and for me it is not a trivial amount that is at risk.”


The helplines are meant to be open from 8am to 6pm each weekday. However, when Mr Amos called at 8am sharp, the line remained engaged.


When Telegraph Money called the Future Pension Centre in the days after the extension was announced, the line was repeatedly engaged and then cut off.


Mr Amos added: “It is complete incompetence. The Government is meant to serve us and it cannot even get basic things like this right.”


Elisabeth Callaghan, a 65-year-old from West Sussex, said that she had spent hours waiting on hold to the Future Pension Centre. “The helpline just endlessly rings off and then you get an engaged signal,” she said. “It just made me lose the will to live. I have never gotten through to anyone.”


“I have written letters and emails, so I hope that if I cannot get through then someone will have a record that I have really tried. But this whole process is not good for my blood pressure, I am constantly tied to the phone feeling very frustrated.”


Deborah Dickson, a 65-year-old from Lancashire, also has not had any luck reaching the Future Pension Centre.


“I have followed all the rules, doing everything I could online,” she said. “My state pension forecast says that I have a 40 year record of NICs, but I still have gaps. I just do not understand and I cannot figure it out until I speak to someone. I am happy to pay in, I just need to know how much and where.”


Ms Dickson’s official state pension forecast suggests that she will receive £168 per week, but she believes that by paying voluntary contributions she will be able to bump this up to the full amount of £185 a week. Over 20 years, this could add up to more than £17,000 in missed income.


Ms Dickson, a retired NHS nurse, said: “I feel really frustrated. I emailed my MP, and I have written to HMRC but I do not have high hopes.”


Anyone who thinks that they have gaps in their National Insurance record should first check their state pension forecast online at: Check your State Pension forecast - GOV.UK.


If there are any missing years of NICs, then government advice is to call the Future Pension Centre to make sure that it would be advantageous to make voluntary contributions.


Once you have confirmed that extra contributions are appropriate, you will be referred to HMRC in order to obtain the unique 18-digit code necessary to make a payment.


The standard cost to make up a year of missing NI contributions is £824.20, although the self-employed pay just £163.80. All voluntary NIC payments will be accepted at the existing 2022-23 rates until the new July deadline.


A spokesman for the Department for Work and Pensions said: “The government has extended the voluntary National Insurance deadline to 31 July 2023 to give taxpayers more time to fill gaps in their National Insurance record and help increase the amount they receive in State Pension.


“The quickest and easiest way for customers to see information about their State Pension and National Insurance record is online. If customers need to contact us, we will ensure calls are answered as quickly as possible.


“Voluntary National Insurance contributions do not always increase your State Pension. Customers should make sure they would benefit before making any payments, including to fill gaps in their National Insurance records between 6 April 2006 and 5 April 2016.”

‘I'll get an extra PS40,000 by topping up my state pension’

Super!

it will for some, you got your stamps up to date Syb? of course you have, despite never having paid any tax etc you leech