The end of the tax year is right around the corner, and if you’re a saver then you’ll be well aware that this is the deadline to top up pensions and Individual Savings Accounts. It’s especially important to be on top of your contributions this year as there are imminent tax raises and changes to tax law coming next tax year.
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice.
What many people should be paying attention to is their National Insurance record as well because buying back missed years is an unconventional way of bolstering retirement income. If you are missing any years in your state pension contribution record between 2006 and 2017 you only have until 5 April to make your maximum contributions.
With a little over a month left until the deadline, here are a few things to do if you’re thinking about making up any missed years:
- Check your state pension record – you will need a minimum 10 years of NI contributions to receive anything or 35 to be eligible to receive the max amount
- Determine if filling gaps makes sense – for those close to retirement age missing years, paying for them might be a good idea, but it might not be worth it if you still have time to accrue 35 years
- Calculate how much you owe – while there is a standard rate of £824.20, there are different classes and your individual situation will determine how much you pay
Advice and help to beat the deadline
It can be hard to figure out whether or not making up years is a sound financial decision. While it will invariably help you down the line, your current circumstances might now allow for it. For advice and thorough review of all your financial endeavours, get in contact with the experts at Dental & Medical Financial Services today and beat the tax year deadline.