PROPERTY SEARCH
UK state pension in Spain: How to ensure you're receiving your full entitlement
Retirees in Spain can now top-up their UK pensions and enjoy thousands more per year
If you’re a UK expat living in Spain and claiming a state pension from Britain, you may be missing out on your full entitlement due to gaps in your National Insurance (NI) record. The good news is that you can still top up your state pension by paying voluntary NI contributions, but you need to act quickly as the deadline to do so is looming.
The UK government has announced that individuals can pay voluntary NI contributions to fill gaps in their state pension record between 2006 and 2018. This can be done online or by requesting a call back from the Department for Work and Pensions (DWP).
The deadline to do this is April 5, but HMRC has recently relaxed the cut-off date by allowing individuals to request a call-back online, which will enable them to pay voluntary NI contributions after the deadline has passed.
Topping up your state pension can be a very worthwhile investment, especially if you have gaps in your NI record. By paying voluntary NI contributions, you can increase your state pension entitlement, which can result in a significant increase in your retirement income.
For example, someone with 10 years to make up could pay just over £8,000 to receive an estimated additional £55,000 in pension income over a 20-year retirement.
That could go a very long way for people retiring to Spain.
Commenting on HMRC “softening the 5 April deadline”, Steve Webb, a former pensions minister, explained: “After the chaos in the run-up to previous deadlines, it is good the government has planned ahead to make sure that people do not miss out simply because they cannot get through on official phone lines to discuss state pension top-ups.”
He added that for many people a state pension top-up will be “excellent value, but it is useful to be able to discuss your options with someone who can see your NI record and in particular highlight if topping up some years would be of little or no value”.
At the moment, it’s a little difficult to get through as thousands of pensioners are phoning to sort out their contributions before the deadline. However, once you request a call-back on the government website before April 5, the clock will stop ticking.
HMRC explained: “People who submit a request to DWP by the 5 April 2025 deadline will still be able to pay voluntary National Insurance contributions back to 6 April 2006, after the deadline has passed.
“When a person submits a request, a message will appear on their screen to confirm that their request has been sent to the DWP Pension Centre. We’d recommend saving a screenshot of the confirmation message.”
You need a minimum of 35 years of NI contributions to qualify for the full new state pension payment, but paying for NI credits can “buy extra years”.
How to top up your UK state pension
To top up your state pension, you can use HMRC's state pension forecast tool to see how much you are due based on your age and if there are any NI gaps you can fill.
You can also check your National Insurance record through your Personal Tax Account or on the HMRC app. If you're unsure about how to proceed, you can request a call-back from the DWP or seek expert advice from a financial advisor like Blacktower Financial Management.
The deadline to top up your state pension is approaching fast and it's essential to act now to avoid missing out on this opportunity. With the full new state pension worth £221.20 a week (£11,502 a year) and set to rise to £230.30 a week (£11,975 a year) in April, it's crucial to ensure you're receiving your full entitlement.
If you're a UK expat living in Spain and need expert advice on how to top up your state pension, contact Blacktower, a leading provider of financial services, to discuss your options and ensure you're making the most of your retirement income.
Their team of experts can provide personalised guidance and help you navigate the complex process of topping up your state pension.
Visit www.BlacktowerFM.com to learn more about bespoke financial solutions and how they can help you take control of your future.
The local Blacktower address is:
120 Avenida Dr. Artero Guirao 2C. San Pedro Del Pinatar, 30740, Murcia, Spain.
If you want more information or wish to make an appointment to discuss your own situation then call 0034 657 684 094 or email keith.littlewood@blacktowerfm.com
Blacktower Insurance Agents and Advisors Limited is authorised and regulated by the Cyprus Insurance Companies Control Service (ICCS) under Licence number 5101. Blacktower Financial Management (Cyprus) Limited is licensed and regulated by the Cyprus Securities &Exchange Commission (“CySEC”) with Licence number 386/20.
