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As we approach the end of another tax year, it may be worth checking your national insurance (NI) record.
If you have had a year where you do not need to make NI contributions, e.g. you are on a career break, you start a business with a low-income year, or you go abroad, you may have gaps in your NI record. This can have a negative effect on your state pension entitlement, as you need 35 qualifying years of NI contributions to qualify for the full benefit. Fewer years could mean reduced pension.
The good news is that, if you wish, in some cases, you can fill these gaps by making voluntary contributions. These can be used to fill any gaps from the previous six tax years.
You can do this via class 3 NI contributions. The rate for this is £17.75 per week for 2025/26.
You used to be able to pay via the cheaper class 2 NI contributions if you were working abroad (£3.50 per week for 2025/26). However, this is being abolished as of 6 April 2026, and all voluntary contributions will be class 3 going forward. So, if you are going abroad now, it will cost you more than it used to.
Making voluntary NI contributions can be beneficial if:
Of course, if you already have a 35-year NI record it may not be recommended.
HMRC and the Department for Work and Pensions (DWP) can help clarify whether paying will actually increase your pension and regulated financial advisers can help you to work through your current and future financial position.
Voluntary NI contributions can be a valuable tool for boosting your State Pension, but they are not a one-size-fits-all solution. Taking advice before making a payment can ensure you get the best value for your money.
THE AUTHOR
Senior Manager, Mixed Tax
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