The Government has announced it is extending the 5 April 2023 deadline to 31 July 2023 for those who are able to look back up to 10 years into their National Insurance contribution records and buy extra years to increase their Basic State Pension.

For those who are not yet claiming this benefit, read on!

Got less than 35 years?

If you have less than 35 years of contributions made into the State Pension you may not receive the full amount which currently stands at £9,627.80 per year but you can buy more to top it up.

Get a forecast!

I would advise any client to directly contact the Department of Work and Pensions and request a forecast of their current Basic State Pension first.  If this shows you will receive an amount equal to or in excess of the above, little can be done to increase the amount by buying extra years owing to the New Basic State Pension rules which came into force on 6 April 2016.

You can do this online via your HMRC portal or complete and submit a BR19 form.

If your record (like mine) shows you have less than 35 years of contributions, think how much longer you could work for to generate additional years.  For example, if you have 10 missing years, currently stand at 25 years of contributions, you could buy 10 years now.  But if you continue working for a further 10 years as well, you will not have any additional benefit from the 10 years you just purchased as your normal working pattern would have created them in any event.

Be wary of buying years that don’t help

If you have 35 years of contributions but are also showing missing years, it is highly unlikely you will be able to increase your forecasted State Pension above the maximum you should already be quoted of £9,627.80 per annum.

Don’t panic

Even though you haven’t paid National Insurance contributions, in some cases you will have been given a credit owing to the rules which govern the system.

Be patient!  It is a popular question right now and owing to how many times the rules have changed over the years in the State Pension (and equivalents) it can take a while for your record and the cost of your added years to be worked out.

Thanks for reading.