Should I Pay to Top Up My State Pension?
Topping up your State Pension is one way to help increase your income when you retire. This guide explains what topping up means, when it might be worth doing, how much it costs, and what to think about before deciding.
What Is the State Pension?
The State Pension is money you can receive from the UK government when you reach State Pension age. You usually need at least 10 years of National Insurance contributions to qualify for any State Pension.
To get the full amount, you usually need 35 years.
The full new State Pension (as of 2023/24) is £203.85 per week.
If you have fewer than 35 qualifying years but more than 10, you may receive a smaller weekly amount.
If you have fewer than 35 qualifying years, you may be able to pay voluntary contributions to fill the gaps.
When Might You Consider Topping Up?
You might think about topping up your State Pension if:
You have gaps in your NI record from time not working, living abroad, or low earnings.
You are close to retirement and want to boost your income.
You returned to the UK after living elsewhere and want to increase your qualifying years.
How Much Does It Cost?
There are two main types of voluntary National Insurance contributions:
Class 2: For self-employed people with low earnings. Costs £3.45 per week (2023/24).
Class 3: For people filling gaps in their NI record. Costs £17.45 per week (2023/24).
To see how many years you might need to top up, log in to your personal tax account on the HMRC website using the Government Gateway. There, you can view your full National Insurance record, check for any gaps, and see which years are eligible for voluntary contributions. This helps you understand exactly how many qualifying years you currently have and what you may need to do to reach the full State Pension.
Is It Worth Paying to Top Up?
This depends on your situation. Some things to think about include:
What you get back: Paying one year of Class 3 contributions costs about £907.40. This could increase your weekly pension by about £5.86 (1/35th of the full pension). Over a year, that is around £305.
How long you live: If you live for four years after reaching State Pension age, you may get back more than you paid in. If you live longer, you may benefit even more.
Other ways to save: You may want to compare this with other savings, like a private pension or an ISA, to see which suits your needs best.
Your partner's pension: If your partner has a lower NI record, it might make more sense for them to top up instead.
How Do You Top Up?
Here are the steps:
Check your NI record: Use the Government Gateway online to see if you have gaps.
Use the State Pension forecast tool: This shows how much you could get and what difference topping up would make.
Decide how to pay: You can usually pay by bank transfer, Direct Debit, or cheque. Contact HMRC for details.
Things to Keep in Mind
Tax: The State Pension is taxable. If your total income in retirement is over the personal allowance, you may pay tax on it. You can read more about how tax with effect your pension here: {LINK To Blog: /PayingTaxInRetirement}
Pension rules: Rules can change in future, which might affect your decision.
Pension Credit: If you are on a low income, you might get Pension Credit instead of topping up. Check what support you may be eligible for.
Summary
Paying to top up your State Pension could help increase your retirement income. It may be worth doing if you have gaps in your NI record and plan to live for several years after retirement. However, it is important to weigh up the cost and your personal circumstances.
Check your NI record, understand what you could get, and explore your options before making a decision.
For further reading on Frequently Asked Questions around Pensions, check out the following blogs:
Pensions - Frequently Asked Questions
This blog addresses common queries about pensions, including the number of qualifying years needed for the full State Pension and how National Insurance contributions affect your entitlement.
Do you pay National Insurance on your pension?
This article explains the rules around National Insurance contributions in retirement, which is pertinent when considering the implications of topping up your State Pension.
A guide to understanding pensions
This comprehensive guide covers the basics of pensions in the UK, including the State Pension, and can help readers understand how topping up fits into their overall retirement planning.
How to create a good pension plan
This blog provides strategies for building a robust pension plan, which can complement the information about topping up your State Pension.
Risk Warnings:
The tax treatment is dependent on individual circumstances and may be subject to change in future.
A pension is a long term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.
Tax planning is not regulated by the Financial Conduct Authority
Approved by InPartnership FRN 192638 June 2025