State pension: take action now to boost your pension by as much as £2,750 every year

People are being urged to top up their national insurance (NI) contributions to boost their state pension income of up to £2,750 a year as the deadline draws near. The Times reported that many people do not get the full state pension when they reach retirement age, with less than half of people getting the maximum amount in 2020.

With the deadline being set on April 5, people now have just over two months to take advantage of the government scheme that allows them to fill historical gaps up to 10 years in their record. Under normal rules, it is only possible to fill gaps in NI records up to six years after the year in question.

Money Marketing said after that point, the year becomes a permanent gap in an NI record, potentially affecting the ability for someone to build up a full state pension. This means, 2016/17 would normally be the furthest year back which could be filled in 2022/2023.

However, for a limited period, people are able to go much further back and fill gaps for any year from 2006/07 onwards, thanks to the extra 10-year window. However, this concession applies only to those who come under the new state pension system; that is, those who reached (or will reach) state pension age after April 5, 2016.

According to The Times, topping up a week of missed national insurance contributions costs £15.85 — a whole year would cost £824.20. If you are filling in gaps for the previous two tax years, it costs slightly less. Filling in one year of missed contributions could boost your state pension income by up to £275 a year.

However, paying £8,242 to make up a ten-year gap could give you an additional £2,750 a year, according to the pensions consultancy