Hopefully, you read our recent update about the approaching deadline for filling historic gaps in your National Insurance (NI) record.
Until 5 April 2025, you can top up your State Pension by filling gaps in your NI record for the period from 2006 to 2018. Usually, you can only fill in gaps for the last six tax years and this will be the case again from 6 April this year.
It’s important to act now if you think you might have historic gaps, but this remains the case even once the deadline has passed.
Your State Pension might not be your main source of retirement income, but it can provide a solid foundation on which to build long-term financial security.
Keep reading for some important reasons why.
3 good reasons to top up your State Pension now
1. It could be a great long-term investment
The time and cost of plugging gaps in your NI record could be relatively small in the present but lead to you getting much more back in the longer term.
You may have gaps in your NI record if at any point you were:
- Not earning enough to meet the NI threshold (whether you were employed or self-employed at the time)
- Unemployed but not claiming any benefits
- Living or working outside the UK and so not making NI contributions.
You can check your National Insurance record using the government website and look for any gaps.
2. You’ll boost your retirement earnings
In 2025/26, the full State Pension will be £230.25 a week or £11,973 a year.
While you might not think of the State Pension as your main source of retirement income, nearly £12,000 a year could make a huge difference to the lifestyle you can lead once your career ends.
This amount is also regular and guaranteed, which can make retirement budgeting much easier. You might use your State Pension to cover fixed and known expenses like bills, for example. This could free you up to take more flexible options with the other pensions you hold.
Pension Freedoms introduced lump sum payments that you might use to free up large amounts of cash in one go, and that could be used for one-off purchases or luxuries. Flexi-access drawdown, meanwhile, allows you to withdraw funds as and when you need them.
Note that flexible options will require you to oversee your own budgeting, so get in touch if you need help to manage these withdrawals sustainably.
3. The income is guaranteed and rises to combat inflation
The income you receive from the State Pension is stable and guaranteed (unlike income from other non-pension sources, such as dividends from investments or rent from buy-to-let properties). As we have seen, the State Pension will provide a regular income for the rest of your life, but that’s not all.
Thanks to the State Pension triple lock, your State Pension rises each year in line with the higher of:
- 2.5%
- the Consumer Prices Index (CPI)
- Average UK wage growth.
This effectively inflation-proofs your income and ensures that the State Pension income you receive is in line with any rises to the cost of living.
Get in touch
After a long career making NI contributions, it’s important to make sure you receive your full State Pension entitlement, and we can help.
If you have any questions about your State Pension or any other aspect of your long-term retirement plans, speak to us now. Get in touch by emailing hello@fingerprintfp.co.uk or calling 03452 100 100.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.