Martin Lewis Shows How to Raise State Pension Benefits by up to £50,000

As a critical deadline draws near, Martin Lewis urges Britons to act now to increase their state pension payouts by up to £50,000. The deadline to purchase missing National Insurance years beginning in 2006 is April 5, 2025. Savers can only cover gaps from the preceding six years after this date. This possibility might be worth “tens of thousands of pounds” to people with inadequate National Insurance records, the host of The Martin Lewis Money Show Live has warned.

Although the deadline has been extended twice, experts predict this will be the last opportunity to obtain these significant pension top-ups. Lewis revealed: “Let’s be clear about this. You may currently purchase back any of the 2006 years that are missing. You may only travel back to 2019 after April 6. You will thus no longer have access to those 13 years. The financial expert cautioned that individuals may “lose the opportunity” if they miss the deadline, calling it “urgent.”

“This is an opportunity you can’t afford to miss,” he said. According to Lewis, closing these loopholes may increase pensions by “tens of thousands of pounds” throughout retirement. Men born after April 5, 1951 (maximum age 73) and women born after April 5, 1953 (maximum age 71) are eligible to collect backdated National Insurance credits. Britons must have made National Insurance contributions for 35 years to qualify for the new state pension.

According to Lewis, national insurance is considered a token. You may get a year to replenish that piggy bank. You receive a more significant portion of the state pension from your years in National Insurance. Due to poor income, job pauses, time spent overseas, or incorrect credit claims, many persons have gaps in their records. Although it costs £824 to acquire, claiming back NI payments results in an additional £328 in state pension pre-tax each year. Analysts say the investment pays for itself in less than three years.

The investment will be worth more than eight times the initial amount for a person who is 66 years old and 20 years past retirement age. Currently, the whole new state pension is £221.20 per week. According to Quilter’s head of retirement strategy, Jon Greer, “some top-ups have resulted in a weekly pension increase of as much as £113.76, equating to an annual increase of £5,915.92.”

Throughout retirement, this possibility might be valued up to £50,000. The journalist on The Money Saving Expert website cites the case of a woman who discovered that she had unpaid National Insurance contributions for eight years and paid them as soon as possible.

This would have increased her state pension by £2,624 per ear and cost her up to £6,500. She would be worth £52,480 altogether if she lived for another 20 years after retirement. Lewis suggests a methodical approach to figuring out whether topping up is beneficial. First, look up a person’s state pension prediction on the Government website and any missing National Insurance years since 2006.

He says that people may fill in any gaps for free by using National Insurance credits, which can be obtained in several ways, such as through jury duty, mandatory sick pay, or child care. Whether you top up before the deadline depends on whether there are still holes and a shortage between 2006 and 2016, use the Money Saving Expert calculator to find out what top-up may be worth.

Recently, the deadline for specific applications was “softened” by the Department for Work and Pensions (DWP). It may still be possible to purchase back lost years beyond the deadline if you ask the DWP for a callback before April 5. According to HM Revenue and Customs (HMRC), since the introduction of their new digital service in April 2024, over 10,000 payments totaling £12.5 million have been processed.