State pensioners are being warned not to miss the “window” for extra payments, as the Department for Work and Pensions (DWP) could reduce pensions by up to £330 a year for those with gaps in their National Insurance (NI) record. If you have gaps in your NI record, you can choose to pay to voluntarily fill them in, which can potentially increase your state pension entitlement.
Understanding the State Pension Requirements
You typically need 35 years of full contributions to get the full new state pension, which is currently worth £241.30 a week, or £12,547.60 a year. However, not every year automatically counts as a qualifying year. Gaps can come from low earnings, time off work, or self-employment. Money Wellness’ Rebecca Lamb said: “The system isn’t just one rule – it’s a patchwork of thresholds, qualifying years, credits and exceptions.”
Why Gaps Are Costly
Rebecca Lamb explained that people often don’t realise they have gaps until much later. She warned: “When something feels confusing or time-consuming, some people put it off. The danger is that they could miss the window to fill gaps or don’t realise it’s worth doing.” The expert noted that paying to fill in even small gaps can “make a big difference.”
Each missing qualifying year could reduce your state pension by around £300 to £330 a year. Over a 20-year retirement, that’s roughly £6,000 lost – and that’s from just one year. The exact amount will vary depending on individual circumstances and future changes.
How to Check Your Pension
The easiest place to start is the Check your State Pension forecast service. It gives you a clear snapshot of what you’re on track to receive and whether you have any gaps. Act now to avoid missing the deadline and potentially losing thousands of pounds in retirement income.
