Voluntary National Insurance contributions can help make sure you have enough qualifying years to get the full State Pension. If you have gaps in your record, you might be able to make voluntary contributions to fill them.
National Insurance contributions
There are four classes of National Insurance contributions (NICs):
- Class 1 contributions are paid by employers and their employees.
- Class 2 contributions are fixed weekly amounts paid by self-employed people.
- Class 3 contributions are voluntary NICs paid by people wanting to fill gaps in their contributions record.
- Class 4 contributions are paid by self-employed people on a portion of their profits.
The tax year in which you reach State Pension age can’t be used as a qualifying year for your State Pension. The rules about voluntary contributions are the same whether you’re currently above or below State Pension age.
After you pay voluntary National Insurance contributions, it can take a few weeks for your National Insurance record to update.
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Things to consider before you decide to make voluntary contributions
Voluntary contributions don’t always increase your State Pension. They also can’t be refunded, so make sure you’ll benefit from making them.
Be aware that you need at least 35 qualifying years to receive the full State Pension. (Or 30 years for people who reached State Pension age before 6 April 2016). So, having a gap doesn’t necessarily mean you won’t get the full State Pension amount.
Before you make voluntary contributions, take these things into account:
- If you claim Pension Credit, any increase in the State Pension would normally reduce your Pension Credit award. This often means that you could be no better off paying voluntary contributions.
- If you die before reaching State Pension age, you won’t get any State Pension.
- If you're in very poor health, or if you have a short life expectancy, and because it will normally take a number of years to break even on your initial payments, you might not get the benefit of an increased State Pension in relation to your payment.
- You might be able to use contributions from your spouse or civil partner, late spouse or civil partner, or former spouse or civil partner to improve your basic State Pension without the need to pay voluntary contributions.
- A higher State Pension might mean you pay more tax.
If you want to speak to a specialist about your options and the cost of making voluntary contributions, contact the Future Pension Centre
How to pay voluntary National Insurance contributions
If you decide to make a one-off payment of voluntary contributions, or you want to pay quarterly when you get a bill, you’ll need to contact HMRC’s National Insurance office on 0300 200 3500 and ask for an 18-digit reference number.
The lines are very busy and you may not always be able to get through to an advisor. If you can't get through, you can also pay by cheque with your National Insurance number as a reference.
If you’re not making National Insurance contributions and want to make voluntary contributions to ensure you don’t continually build up a gap in your National Insurance record, you can set up a Direct Debit to pay the money monthly.
For example, you might be employed but earning under £123 a week and not eligible for National Insurance credits. You don’t need to phone HMRC for a reference in this case.
Class 2
You make Class 2 contributions if you’re self-employed, and most people make these contributions as part of their Self Assessment tax bill. However, if you don’t pay through Self Assessment, you can use the ‘Pay now’ link on the government’s Pay voluntary Class 2 National Insurance page. You’ll need:
your banking details (account number and sort code)
the 18-digit reference number on your HMRC payment request
Class 3
To pay Class 3 contributions if you need to fill gaps in your record, use the ‘Pay now’ link on the government’s Pay voluntary Class 3 National Insurance page.
You can usually pay voluntary contributions to fill gaps for the past six years. Check the GOV.UK page for payment deadlines for voluntary contributions
Cost of voluntary contributions
The cost to fill in gaps in your National Insurance record for the 2023/24 tax year are:
| Type | Weekly amount | Annual equivalent |
|---|---|---|
|
Class 2 |
£3.45 |
£179.40 |
|
Class 3 |
£17.45 |
£907.40 |
Each additional qualifying year works out to be an extra £5.82 a week (or £302.64 a year) in State Pension.
If you lived 20 years, the amount you would get back would be over £6,000 for an initial cost of between £179 and £907.
Whether you pay Class 2 or 3 will depend on your employment status and whether you ever lived and worked abroad.
Where you’re paying contributions for previous tax years, the cost depends on the year involved. For example, the cost of Class 3 voluntary contributions for each of the following full years be:
2006/07– 2019/20: £824.20
2020/21: £795.60
2021/22: £800.80
2022/23: £824.20
Find out more about Voluntary National Insurance at GOV.UK
What you’ll get from a State Pension forecast and how to request one
Before you make voluntary National Insurance contributions, look at your State Pension forecast. This forecast will give you an estimate of your State Pension based on your current National Insurance contribution record.
Your projected State Pension at State Pension age is based on whether you continue to make National Insurance contributions (or receive National Insurance credits).
The State Pension changed in 2016 and arrangements were put in place to ensure that people will not get less than they would under the old system if using their own National Insurance record.
A State Pension forecast will also tell you whether you were ever contracted out of the additional State Pension under the old system.
If you were contracted out for a period of time this will show on your State Pension forecast as a ‘Contracted Out Pension Equivalent’ (COPE). This is the amount you would have received as an additional State Pension had you not contracted out, and therefore the COPE could reduce the amount of State Pension you receive even though you might have 35 or more qualifying years of National Insurance contributions.
You can ask for a State Pension forecast in three ways:
- Online: to help plan your retirement income at GOV.UKOpens in a new window (you’ll need to create an account to prove your identity and be under State Pension age).
- By calling: 0800 731 0175 – or if phoning from abroad +44 191 218 3600. This service is only available if you’re 30 days or more from your State Pension age.
- By post: by completing a BR19 form and sending it to – The Pension Service 9, Mail Handling Site A, Wolverhampton WV98 1LU. This service is only available if you’re 30 days or more from your State Pension age. Get the BR19 form at GOV.UKOpens in a new window
