State Pension - qualifying years
Posted on 2nd March 2023 at 14:45
Currently, there's an extended window for individuals to plug holes in their state pension qualifying years record using voluntary NI contributions. This was scheduled to close after 5 April 2023, but the government has now extended it. yet again.
The state pension is only available to those who have a sufficient NI history.
Entitlement is accrued by reference to “qualifying years”. Missing years can result in a shortfall when retirement age is attained, meaning only a partial pension is paid. If the gap is substantial, there may be no entitlement at all.
To permit people to catch up on missing years, the government permits payment of Class 3 NI at a fixed rate - known as voluntary contributions - to be paid. Usually, this can only be done for the last six years. However, there is a current incentive extending the window back to 6 April 2006.
This opportunity was due to end on 5 April 2023, but the government announced an extension to 31 July 2023 but have just now extended it to 5 April 2025. If you're concerned about your entitlement, check your contribution history via your personal tax account. Remember to consider the years you have left to work before making any payments though.
If you want to make contributions, they are payable at the Class 3 rate for 2022/23, which was £15.85 per week.
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Tagged as: Individuals
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