The new digital service for checking state pension forecasts is a joint initiative by HMRC and the Department for Work and Pensions (DWP). This service has been upgraded to offer a comprehensive digital solution.
The service can be found on GOV.UK by clicking on the following link – Check State Pension.
Through this service, most individuals below State Pension age can view their pension forecast and identify any gaps in their National Insurance Contributions (NICs) record. This is particularly useful for those considering making voluntary NIC contributions to boost their entitlement to benefits, including the State or New State Pension.
Typically, HMRC allows you to pay voluntary contributions for the past six tax years, with a deadline of April 5 each year. However, there is currently an extended opportunity for individuals to address gaps in their NICs from the tax years April 2006 to April 2017, as part of transitional measures to the new State Pension. This deadline, originally set to close sooner, has been extended several times and now runs until 5 April 2025.
The launch of HMRC’s online service aims to streamline this process, especially as HMRC helplines have been overwhelmed with requests for information and claims to pay additional NICs. HMRC has also confirmed that all relevant voluntary NIC payments will be accepted at the 2022-23 rates until 5 April 2025.
It’s recommended to regularly review your State Pension status to ensure you are maximising your entitlement. Additionally, consider what other savings or pensions you might need for a secure and comfortable retirement. If you would like to discuss any personal estate planning with a member of the CB Reid team, please do contact us.