“This is therefore a sensible extension, giving people adequate time to assess whether it’s worth topping up their contributions.”
On April 6, 2016, the government introduced the new state pension which means anyone who reached the pension age since then, has been put on the new state pension.
Under normal rules, you can only fill gaps in your NI record from the last six years but if you reached or will reach state pension age after April 6, 2016, you currently have the chance to plug gaps in your NI record going back to 2006.
“Paying voluntary national Insurance contributions could make a massive difference to your future,” Butler said.
“Based on the 2022/23 rates, buying a full NI year could boost your state pension by £275.08 a year.
“If you start claiming at 66 and live for another 20 years, you’ll have topped up your state pension by around £5,500.”
Jon Greer, head of retirement policy at Quilter, said the government’s latest decision should come as a relief to many who have been desperately trying to make NI top ups but have been “stumped by reports of long call wait times”.
“This will hopefully help avoid any further log jams for the government and more people can take advantage of what can be a very valuable bit of retirement planning,” Greer said.
“Ultimately, this represents a golden opportunity and people should not squander it.”
A Freedom of Information request by Quilter revealed that over the past two decades, more than four million individuals have made these advantageous Class 3 NICs.
“With this deadline extension, we hope that even more people will benefit from this opportunity,” he said.
“On average, approximately 193,000 people annually have made these top-ups from the 2000/01 tax year to the 2020/21 tax year.
“The extended deadline will particularly impact those aged between 45 and 70 with gaps in their NI records and these individuals should take action to check whether they can maximise their retirement benefits if they can afford to.”
sonia.rach@ft.com
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