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Purchasing six years of NI contributions at the cost of £4,945 could translate to an additional state pension of £36,000 over 20 years, £18,000 over 10 years, and £9,100 over five years.
Even purchasing one additional year of NI contributions at the cost of £824 could result in a significant uplift in state pension – £6,100 over 20 years, £3,000 over 10 years and £1,500 over five years.
Mr Jobson said: “If you are unsure if you have any gaps in your NI record, you can check this through the Government website.
“It has never been more important to pay attention to changes affecting the state pension – even if you are not near the state pension age.
“Changes to rules on voluntary NI contributions and rumours that plans to increase the state pension age from 66 to 68 could be brought forward could significantly reduce the quality of life at retirement for those caught unaware.”
When plugging NI gaps isn’t suitable
While plugging National Insurance gaps can make for a worthwhile investment, there are instances when it may not be the most lucrative.
Alice Guy, head of pensions and savings at interactive investor, said that while a person will only need to live for four years into retirement to claw back the extra contribution, there are a few things to watch out for and paying voluntary national insurance contribution isn’t suitable for everyone.
She said that first, “it’s important to check the Government website to see if you have gaps in your National Insurance record before you make additional contributions.”
Ms Guy explained: “There’s no point buying additional contributions if you already have or are likely to have 35 years of national insurance contributions as you’ll already be entitled to a full state pension.
