New HMRC and DWP service could help 20 million 'boost' retirement cash

HM Revenue and Customs (HMRC) has launched a new service with the Department for Work and Pensions (DWP) today, which should help make it easier for more than 20 million workers to retire comfortably.

The service will allow every worker to see how much money they will get from the government when they retire through the State Pension. Crucially, it will also let people pay to boost their State Pension if they have any gaps in their National Insurance (NI) record.

To get the full State Pension worth around £221 every week, workers need to have around 35 years of payments on their NI record, which is reduced to £169 per week for those with only 10 years of contributions. The new Check Your State Pension tool allows workers to see what they will get based on their current contributions, and see if it is worth filling in any gaps in their record.

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Nigel Huddleston, Financial Secretary to the Treasury, said: "Having peace of mind when planning for retirement is crucial to ensure people can enjoy later life. That’s why HMRC has launched this new online service today, making a real difference for thousands of pensioners in their retirement while providing certainty to those in their middle years and those still planning ahead."

Workers will be able to pay voluntary contributions towards any gaps in the past six years of their NI record, entirely though the online system. As part of a grace period during the move over to the new State Pension, people have until April 6 next year to pay for any gaps in their records dating back to April 6, 2006 - meaning millions of older workers have less than 12 months to boost their