Why Would You Ever Pay Extra National Insurance?

For many self-employed individuals, the answer is simple: to secure a full State Pension.

With changes to National Insurance contributions (NICs) and an increasing emphasis on personal pension planning, understanding how NICs work and when it might be worth paying them voluntarily has never been more important.

How the State Pension Works

To receive the full new State Pension in 2025/26, you need 35 qualifying years of National Insurance contributions. At least 10 years are needed to receive any pension at all.

The full weekly State Pension is £230.25 in 2025/26, or roughly £11,973 per year. Each qualifying year you earn adds approximately £6.58 per week (about £342 per year) to your State Pension amount.

Self-Employed NICs: Class 2 and Class 4

If you're self-employed, your NICs fall into two categories:

• Class 2 NICs:
  As of April 2024, these are no longer mandatory for most. However, if your profits are below the Small Profits Threshold (£6,845 in 2025/26), you can voluntarily pay Class 2 at £3.50 per week (around £182 per year) to maintain your NIC record.

• Class 4 NICs:
  These are based on your profits:

  • 6% on profits between £12,570 and £50,270

  • 2% on profits over £50,270

Class 4 contributions do not count toward your State Pension entitlement—only Class 2 (or Class 3, if applicable) do.

Voluntary Contributions: Class 2 vs. Class 3

If you find gaps in your NIC record, you can choose to fill them with voluntary contributions:

• Class 2 (voluntary): £3.50 per week

• Class 3: £17.75 per week

That means Class 2 is much cheaper—saving you over £740 per year—and achieves the same pension benefit if you qualify to pay it.

When Is It Worth Paying?

It depends on your situation:

• Yes, it’s worth paying if:

  • You have fewer than 35 qualifying years.

  • You are self-employed with profits below £6,845.

  • You’re not receiving NI credits from benefits like Child Benefit or Carer’s Allowance.

• No need to pay if:

  • You already have 35 qualifying years.

  • You expect to build up 35 years through employment or credits.

  • You already have a job that earns over £6,396 per year (52 × the weekly lower earnings limit), giving you a qualifying year through Class 1 NICs.

Check Your NI Record

Before making any decisions, check your current record:

1. Go to www.gov.uk/check-national-insurance-record

2. Sign in with your Government Gateway ID

3. Review for gaps or shortfalls

Final Thought

Paying extra National Insurance—especially voluntary Class 2 contributions—can be a smart, cost-effective way to boost your retirement income. At just £3.50 a week, it could add hundreds of pounds a year to your future State Pension, making it one of the best investments available for long-term security.