Anyone considering making voluntary contributions to National Insurance (NI) in order to fill in gaps in their contribution record in order to boost their state pension should do so before April 6th in order to take advantage of favourable rates, pensions experts have advised.
For example, someone wanting to make a contribution to meet a gap from the 2010-11 financial year can save £153.40 under the preferential rates, paying £626.60 at the annual rate. This rises to £780 on April 6th.
Director of Policy at Royal London Steve Webb said that voluntary contributions to NI can offer a good rate of return thanks to the subsidies offered by the government. "Those considering doing so may wish to act quickly and could save hundreds of pounds by doing so," he explained. Managing Director of Shore Financial Planning Jon Trehame agreed, adding, "Many people will be unaware that the cost of filling historic gaps in their National Insurance record is due to be hiked in April."