Changes to Voluntary National Insurance Contributions (NICs): What you need to know

For those working in the medical sector, understanding National Insurance Contributions (NICs) is essential, especially when it comes to planning for retirement. Significant changes to voluntary NICs will take effect from 6 April 2025, and these may impact your future State Pension entitlement.

To ensure you are fully informed and prepared, here’s what you need to know:

1. Check your State Pension forecast

Your State Pension forecast provides an estimate of how much you are entitled to based on your current National Insurance record. This will help you determine whether you have any gaps in your contributions that may affect your pension. You can request your forecast online through the UK Government website here.

2. Review your National Insurance record

Your National Insurance record determines how many qualifying years you have built up. To receive the full State Pension (£221.20 per week as of 2024/25), you typically need 35 qualifying years. A qualifying year is one where you:

• Worked and paid NICs
• Received National Insurance credits (e.g., if you were unemployed, ill, or a carer)
• Paid voluntary NICs

You can check your National Insurance record here.

3. Consider voluntary contributions

If you have gaps in your record, you may be able to make voluntary NICs to boost your State Pension. However, from 6 April 2025, new rules will restrict the number of past years you can pay for.

Currently, if you were born after 5 April 1951 (men) or after 5 April 1953 (women), you can pay voluntary NICs to fill gaps from April 2006 to April 2016, but only until 5 April 2025. After this deadline, you will only be able to pay for gaps from the past six years.

What should you do now?

• Act early: If you have gaps between 2006 and 2016, review your records now.
• Assess the benefits: Paying voluntary NICs may not always be the best financial decision, so it’s important to understand whether it’s right for you.
• Seek advice: If you’re unsure, speaking with a financial advisor or accountant can help you make the best decision for your circumstances.

How can we help?

If you work in the medical sector and need guidance on how these changes may impact your retirement planning, Larking Gowen is here to help. Our team can review your NIC record, assess your options, and guide you through the process.

Get in touch with your usual Larking Gowen contact, or reach out to us via 0330 024 0888 or enquiry@larking-gowen.co.uk.

Andrew Burwood