Brits need to have at least 35 qualifying years of National Insurance payments to get the full state pension but some non-UK residents who have worked here for as little as three years can apply to top up their NI to get a full state pension.
The Financial Times flags an article in the Australian Financial Review which says: “An extraordinary, yet largely untapped, resource exists for anybody who has worked three years or more in the UK: the state pension.
“Thanks to an unusual provision in UK law, Australians who have worked in the UK for at least three years may be eligible to claim a state pension that can provide them with an extra $24,000 a year from the age of 67 onwards.”
That arrangement is set to end on April 5 when a deadline which allows people, including Brits to top up their state pension as far back as 2006, expires.
People who paid tax in the UK are being alerted to the top up via social media posts and news stories across the world including posts on Instagram confirming that the ‘wild loophole’ is set to close.
Making up for one year of missed NI contributions costs up to £907.40, which will add £302.64 per year or £5.82 per week to the state pension.
Sir Steve Webb a former pensions minister said the idea behind being able to make a top up had been aimed at people who work in the UK, move abroad but come back to retire.
The Finanical Times points out that only those living in the European Economic Area, Switzerland or a country that has “reciprocal agreements” with the UK will benefit from the triple lock.
The news comes as a crucial state pension top-up deadline approaches.
Brits who have gaps in their state pension contributions have two weeks to take advantage of a special deadline which allows them to fill in gaps in their National Insurance record by up to 19 years. Working Brits can top up their state pension by filling in gaps in their National Insurance (NI) record but they can normally only backdate it by six years.
How to top up your state pension
The Department of Work and Pensions (DWP) has been allowing workers who may have gaps in their National Insurance record to backdate any payments as far ago as April 2006. Those who’ve had a career break, worked abroad and or taken time off work for childcare or care purposes are most at risk of having gaps in their state pension record. You usually need 35 qualifying years of National Insurance (NI) contributions to get the full state pension. If you don’t have enough, you can pay to fill gaps in your record to boost how much you get – even if you’re already getting your State Pension. Buying back credits means you can increase the amount of state pension you receive.
When the ‘new’ state pension was introduced in 2016, the DWP removed the six-year rule back to 2006. This deadline has been extended three times since the announcement due to demand, but the final deadline is April 5, 2025.
The current full state pension is £221.20 a week. However, to get that full amount, you will need to have 35 qualifying years of NI contributions. Workers who have taken time off from employment, such as to raise a family or care for older relatives, may have gaps in their NI contribution history. Each year of voluntary contributions can increase your state pension by £328.64 annually. So if you buy a full year and live 20 years beyond the state pension age, you would receive an additional £6,500 in their state pension for around £907.
How much does it cost?
Making up for one year of missed NI contributions will cost you up to £907.40, which will add £302.64 per year or £5.82 per week) to your pre-tax state pension.
However, the rate you pay depends on which year you’re topping up:
| Tax year | Rate |
|---|---|
| 2006/07 – 2019/20 (inclusive) | £824.20 (£15.85/week) |
| 2020/21 | £795.60 (£15.30/week) |
| 2021/22 | £800.80 (£15.40/week) |
| 2022/23 | £824.20 (£15.85/week) |
| 2023/24 | £907.40 (£17.45/week) |
| 2024/25 | £907.40 (£17.45/week) |
You can top up your NI in two ways via the gov.uk website:
- making voluntary Class 2 National Insurance contributions; or
- making voluntary Class 3 National Insurance contributions.
You can’t pay to increase your State Pension beyond the maximum of £221.20 per week (2024/25).
Check your National Insurance record on the DWP website if you have any NI contribution gaps.
Even if you have missing years, you may still qualify for a full State Pension. You can check this by using the Government’s state pension forecast calculator.
