People have been given more time to close gaps in their Social Security balance sheets – to ensure they can maximize their state pension entitlements.
Originally, people had until April 5 to make voluntary corrections for gaps between 2006 and 2016, but the deadline has been extended to the end of July.
The original deadline had resulted in blocked phone lines.
In general, people need 35 years of qualifying contributions to receive a full state pension.
Some people may have fields on their social security file, for example if they have lived abroad or taken time off for caring responsibilities.
Top-ups are permitted as part of the switch to the lump-sum statutory pension introduced in 2016.
But blocked phone lines to HM Revenue and Customs had some fearing they would miss the April deadline, prompting the latest extension the government said was to ensure nobody missed out.
“HMRC [HM Revenue and Customs] and DWP [the Department for Work and Pensions] have seen an uptick in client outreach recently,” said Victoria Atkins, Finance Secretary at the Treasury.
“We have listened and acted on concerned members of the public. We know how important state pensions are to retirees, which is why we’re giving people more time to close gaps in their Social Security balance sheets to strengthen their entitlements. “
Pension experts say additional contributions may not be suitable for everyone in these circumstances. Therefore, it is important to consider whether it is worthwhile for their finances.
Anyone can view their Social Security records in their personal tax account and get a free state pension forecast to help them decide if contributing voluntarily is a good decision for them.
Sir Steve Webb, a former Liberal Democrat Pensions Minister who is now a partner at LCP, said: “For most people, paying voluntary social security contributions to cover a deficit in their state pension makes a lot of financial sense.
“But it’s also important to ensure that additional contributions are right in your individual case, as sometimes additional contributions cannot improve your pension.”
Helen Morrissey, head of pension analysis at investment platform Hargreaves Lansdown, said: “It’s important that you check this before handing over money, as you may be able to fill these gaps in other ways – for example by backdating a benefit entitlement.”
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