Thousands of Brits have less than 6 months to boost their State Pension - what you need to know

HMRC has said more than 10,000 payments worth £12.5 million have been processed through a new online service to help people boost their State Pension, which launched in April

HM Revenue and Customs (HMRC) has disclosed that over 10,000 payments amounting to £12.5 million have been processed through a new digital service aimed at boosting people's State Pensions. The service, which launched in April, allows individuals to address any discrepancies in their National Insurance (NI) records dating back to 2006, but they have less than six months left to do so.

After the deadline of April 5 next year, the standard restriction of making voluntary contributions for the previous six tax years will be reinstated. In 2023, the former government extended the cut-off date for making voluntary NI contributions to April 5, 2025 for those affected by new State Pension transitional arrangements, covering the tax years from April 6, 2006 to April 5, 2018.

This extension has given individuals extra time to assess their options and make pension contributions. Men born after April 6, 1951 and women born after April 6, 1953 are eligible to make voluntary NI contributions to increase their New State Pension.

Some individuals may qualify for NI credits instead of having to make contributions, so they should check and consider what is best for them, according to the Daily Record. HMRC revealed that an analysis of the online service usage shows that the majority (51%) of customers topped up one year of their NI record, with the average online payment being £1,193.

Pensions Minister Emma Reynolds has urged the nation's pensioners to take action. She 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."

For further information on making voluntary contributions, people can turn to GOV. UK here. People of working age can also check their State Pension forecast on GOV.UK here.

Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners, gave her take on what's needed for an adequate pension: "People typically need at least 10 qualifying years of NI (national insurance) contributions to receive any state pension at all and at least 35 years to receive the full new state pension - though they don't need to be consecutive years."

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She also dropped a hint of warning for those trying to fill in their National Insurance records, saying: "Plugging gaps can be quite an expensive process, so it is important to assess whether you actually need to buy back any missing years. This will depend on how many more years you plan to work, and whether you are eligible for NI tax credits, which fill the gaps, such as those who have been sick, were unemployed or took time out to raise a family or care for elderly relations.

"Plugging gaps in your record is relatively straightforward since the Government rolled out its new NI payments services in April this year - a State Pension forecast tool that has been checked by 3.7m since its launch.

"People simply need to log into their personal tax account or the HMRC app to not only view any payment gaps but also check if they can plug those gaps directly through the Government's digital channels.

"A short survey assesses the person's suitability to pay online with those eligible to pay directly given a series of options to plug any gaps depending on when someone wants to stop working. Calculating whether to top up can be confusing though and ultimately there is no point paying for more years than you need because you won't get that money back.

"People who might need to top up include those that took a career break as well as low earners or expatriates living and working abroad. Remember, this deadline has been extended a couple of times in the past, which makes it more likely the Government will stick to the April cut-off point this time around. For this reason, those that think they might need to take action should start the process now."

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