Act Now to Maximise your State Pension
Posted on 30th January 2025
Tom explains how to claim Gift Aid tax relief to reduce your tax bill when completing your self-assessment.
People have until 5 April 2025 to plug any gaps in their National Insurance (NI) record, which could have a significant impact on your state pension. This is an opportunity to ensure you receive the full entitlement to your state pension and secure your financial future in retirement.
At Abaqus Ltd, we understand that financial planning for retirement can be complex, especially when it comes to voluntary contributions. As accountants in Gloucestershire, we provide expert advice and guidance to help individuals make informed decisions about their pension and financial future.
Our team can support you in navigating the rules and understanding the value of filling those missing NI gaps, ensuring that you don't miss out on this crucial opportunity.
Why Should You Consider Making Voluntary NI Contributions?
The HMRC has announced that taxpayers have just six months to maximise their state pension by making voluntary National Insurance contributions dating back to 6 April 2006. After this date, the ability to top up contributions for the period between 2006 and 2018 will no longer be available. This means that anyone hoping to boost their state pension by filling these gaps must act quickly.
For those who are eligible, this opportunity could make a significant difference to your weekly state pension. By topping up missing credits, individuals could see an increase in their weekly payment by as much as £107.44. With more than 10,000 payments worth £12.5m already made through the state pension digital service, it is clear that many taxpayers are taking action to improve their pension outcomes.
Are You Eligible to Make Voluntary Contributions?
Making voluntary contributions can be a wise decision for many, especially if you have gaps in your NI record due to reasons such as periods of sickness, unemployment, or caring responsibilities. It's important to assess your individual situation to determine whether topping up your National Insurance record will benefit you. To find out if you're eligible to pay voluntary contributions, you can use the online forecast tool available on the government website. This tool helps you understand your state pension entitlement and whether you need to make any additional payments to fill gaps in your record.
At Abaqus Ltd, we recommend assessing your NI record as soon as possible, so that you can make the necessary contributions before the deadline. We can provide detailed advice on your financial situation, and help you understand the best course of action based on your personal circumstances.
Tom says:
"Planning ahead for your state pension is crucial. At Abaqus Ltd, we help you navigate these opportunities to secure your financial future. With the 5 April 2025 deadline approaching fast, now is the time to take action and ensure you're not leaving money on the table. Our team of expert accountants in Gloucestershire are here to assist you every step of the way."
How to Make the Most of This Opportunity
If you believe that you have gaps in your National Insurance record, the first step is to check your state pension forecast through the government’s official tool. This will tell you if you need to make voluntary contributions and the cost of doing so.
It's vital to act fast, as after the 5 April 2025 deadline, only payments for the past six tax years will be accepted, meaning you could miss the chance to make up for any historical gaps in your record.
Whether you're nearing retirement or planning ahead, ensuring your state pension is maximised can provide significant benefits to your financial security. If you need help understanding the process or would like advice on your tax and pension planning, get in touch with our team at Abaqus Ltd, accountants in Gloucester.
To learn more about our accountancy services or to book a consultation, visit our website today. We are here to help you make the best decisions for your retirement and ensure you're fully prepared for the future.
By taking action now, you can enhance your state pension, giving you peace of mind and confidence as you plan for the years ahead.
More information can be found on the government website.
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