Parents warned they could lose £33,000 if they don't act soon

Mums and dads in the UK could miss out on a massive £33,000 from their retirement pot if they don't act fast. Many parents have had time off work to care for little ones, but this can mean gaps in their National Insurance record, which decides how much state pension they'll get.

Personal finance expert Amy Knight at NerdWallet UK says if parents don't take action before the end of the tax year, they might lose a fortune. Amy said: "Having children can result in more than just a lack of sleep. Stay-at-home parents or those working part-time may have 'missing' or 'partial' years on their National Insurance record, where they haven't paid enough NICs, putting their state pension at risk.

"Approximately 1.6 million parents who had young children between 2016 and 2018 need to urgently check their NI record before the tax year ends. Those who waited until their child started school at age four before returning to work could see their annual state pension income reduced by £1,310 per year.

"Over a 25-year retirement, this could amount to a loss of almost £33,000 or more as the state pension increases. Currently, voluntary contributions are being accepted for the tax years 2016-17 and 2017-18, but time is running out."

The opportunity to fill gaps in your National Insurance record is closing soon, warns financial expert Amy.

Plugging in the gap for your National Insurance contributions

Individuals can only make voluntary contributions to their National Insurance record for the previous six years from a certain tax year. This was extended slightly over the last tax year, but the six-year limit will be reimposed on April 5 of this year.

Amy said: "The opportunity to fill gaps in your NI record for these years will end at midnight on April 5, 2025. Now is your chance to make the years you spent juggling toddlers count. It takes just 15 minutes to log into the government website to check your NI record, find out if you're eligible to make voluntary payments to turn these into qualifying years, and complete the transaction to HMRC using online banking."

Full details on how you can make voluntary National Insurance contributions can be found on GOV.UK here.