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Experts from LCP are highlighting a generous Government scheme which allows individuals to fill historic gaps in their National Insurance record. To receive the full new state pension, Britons need to have 35 years of contributions under their belt. However, the deadline for this scheme is in less than three months and those approaching retirement are being urged to apply as soon as possible.

Investing in state pension payments top-ups can generate a better “rate of return” than almost any other way of using savings, according to savings.

For example, someone with 10 missing years in National Insurance contributions could pay out a little over £8,000 to fix the gaps.

This would result in a staggering payment boost of £55,000 in state pension over a typical 20-year retirement.

Currently, under normal rules, it is only possible to fill gaps in someone’s National Insurance record up to six years after the year in question.

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Following this deadline, the year becomes a permanent gap in an individual’s National Insurance record and could affect their ability to build up a full state pension.

With this in mind, for people preparing for retirement, the 2016/17 tax year would normally be the oldest year which could be filled in for 2022/23.

Despite this, until April 5, 2023, Britons are able to go much further back and fill gaps for any year from 2006/07 onwards.

This is an extra 10 years and applies to people only to those who come under the new state pension system.


As it stands, people receive the new state pension if they reach retirement age after April 5, 2016, while those born before this date get the basic state pension.

Pension analysts are warning the British public about this coming deadline as older people face losing £55,000 in their retirement.

Steve Webb, a LCP partner and former pensions minister, previously discussed the importance of this Government scheme.

He explained: “For many people, paying voluntary NI contributions can be great value for money and can help them boost their state pension in a cost-effective way.

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“For people with gaps in their National Insurance record going back more than six years, the window to fill those gaps will soon close.

“Some people have gaping holes in their National Insurance record and this will be the last chance to fill them.”

Presently, the current cost of voluntary Class 3 National Insurance contributions is £15.85 per week or £824.20 per year.

This one-off lump sum payment can add up to 1/35th of the full rate to someone’s eventual state pension.

Due to the new state pension currently being £185.15 per week, this boost is worth £5.29 per week or around £275 per year.

However, according to LCP’s pension minister, using this scheme is not the correct plan of action for everyone approaching retirement.

Mr Webb explained: “Although topping up is not the right answer for everyone, and people should always check with DWP before handing over any money, for some people this could be by far the best rate of return they could get on any spare capital. Missing out could cost some workers thousands of pounds”.

The deadline for filling in the ten-year gap in National Insurance contributions is April 5, 2023.