State Pension and National Insurance Contributions

An individual’s eligibility for the State Pension is influenced by their National Insurance (NI) record, which consists of the following:

• NI contributions (NIC) – these are typically made by employed or self-employed individuals, dependent on earnings
• NI credits - available to those eligible, for example, individuals who are unemployed, ill or a parent/carer
• voluntary NIC – for those who wish to make contributions but are not automatically required to. For example, individuals who are employed but have low earnings
• unemployed and not claiming benefits, self-employed with small profits, or living or working outside of the UK. 

To qualify for the maximum 'new State Pension' (received by those retiring on or after 6 April 2016), individuals must have at least 35 qualifying years of NICs. For part payment of the ‘new State Pension’, they must have contributed for at least 10 years.

An individual may not have made sufficient NIC in a tax year in the following circumstances.

• They had a break between moving firms.
• They took a career break.
• They have not been appropriately registered as self-employed with HMRC.

If individuals have not contributed enough prior to reaching State Pension age, then they can make voluntary NIC to top up their contribution history. Typically, voluntary contributions can only be made for the prior six tax years. .

Check your National Insurance record before 5 April 2026

Individuals are only able to top up NIC payments for the previous six tax years, ie going back to the year ending 5 April 2019. 

An individual’s NIC are important as they are used to calculate their entitlement to the State Pension. It is therefore important to check NI records to see if there are any missing contribution periods.

What you need to do

Individuals should take the opportunity to check their NI record to identify any shortfalls in their NI history. If a shortfall is identified, individuals should take appropriate financial advice, as it may be beneficial to make a voluntary NIC before 5 April 2026, to ensure entitlement to the full State Pension.

Individuals should also check that their record is correct and includes NIC paid through PAYE or self-assessment and NI credits earned. HMRC should be contacted to correct any errors.

Taxpayers can check their NI record and can contact HMRC about NIC.

For further information, please speak to your usual Crowe contact or get in touch with our Financial Planning team.