New State Pension deadline next month for people to make sure they qualify for full pay in retirement

dailyrecord.co.uk:

Time is running out for people to buy credits to plug any gaps in their National Insurance (NI) record for any missed years of contributions from as far back as April 2006.

The UK Government extended the deadline from April 5, 2023 to July 31, 2023 after the original deadline saw a surge of people trying to contact the Future Pension Centre phone line, but unable to get through.As a result, the Department for Work and Pensions (DWP) extended the deadline by three months and deployed more staff to handle the increased call volume.

To get the full New State Pension in retirement, you need around 35 years’ worth of NI contributions and to receive any payment from it at all, you need at least 10 years.Buying back missed years can be a good way to boost later-life income as the New State Pension is worth up to £10,600.20 over the 2023/24 financial year - paid every four weeks at £203.85.Buying just one qualifying year of NI at the standard rate of £824.20 adds up to £275 per year - 1/35 of the full rate of the State Pension - to your pre-tax State Pension.The breakeven point of making those contributions is three years after you start claiming your State Pension, so it’s a worthwhile investment for the many years of retirement to come - if you can afford to do so.The UK Government has been allowing people to retrospectively build their April 2006 to April 2016 NI record through voluntary contributions, as part of transitional arrangements introduced alongside the new State Pension.

However, from August 1, only missing NI contributions over the past six years can be bought. Alice Haine, Personal Finance Analyst at Bestinvest, the DIY investment platform and coaching service, explains: “If you live 20 years beyond the current