Deadline Looms for National Insurance Contributions, Millions at Risk of Losing State Pension

Experts are urging parents and individuals to take immediate action to address gaps in their National Insurance (NI) records before the April 5 deadline, after which they will only be able to fill gaps from the last six tax years. This is particularly crucial for those who may have taken career breaks, worked abroad, or had time off for childcare or elder care, as these groups are most likely to benefit from filling these gaps to secure the full state pension entitlement. The government has also announced new state pension credits for parents who opted out of Child Benefit due to the High Income Child Benefit Charge, creating a potential risk of wasted voluntary NI contributions. Those nearing retirement should check their records as a minimum of 35 qualifying years is needed for full benefits, and failing to act now could mean having to work longer to qualify. Additionally, basic state pensioners may face a sub-inflation increase in their payments due to current state pension rules, highlighting ongoing financial challenges for retirees. The urgency of this situation is compounded by the limited time frame for making necessary contributions to ensure adequate pension income in the future.