Martin Lewis issues 'six month warning' for anyone under 73 to 'gain £10,000s'
The money saving expert described it as 'the most lucrative thing' many under-73s can do, with one fan saying she increased her State Pension by £50,000
by Catherine Addison-Swan · ChronicleLiveMartin Lewis has urged anyone from the ages of 40 to 73 to "act now" to potentially gain tens of thousands of pounds ahead of a deadline next spring.
The Money Saving Expert founder issued the "six month warning" with time running out to boost your State Pension by paying voluntary National Insurance contributions. In order to get the full New State Pension, introduced in 2016, you need 35 qualifying years on your National Insurance record - but many people do not meet this threshold due to various factors including career breaks, low incomes, or years abroad.
However, there is currently an option in place allowing people to buy National Insurance contributions to be backdated all the way to 2006, helping to increase their qualifying years and therefore boost their State Pension payments. But the deadline to do so is fast approaching, with people having until April 5, 2025 to make their contributions.
Writing on X, Martin said: "There's an April 25 deadline that if you miss it means you lose the chance to top up 13 years of National Insurance, possibly missing £10,000s. Yet it takes time, so you need to know NOW if you should start."
The money expert explained further in the latest episode of The Martin Lewis Podcast, telling listeners that for each £825 or less they pay, they could gain £5,400 or more by boosting their National Insurance years. Martin shared a story sent in from a listener, who said that thanks to the scheme her State Pension would increase by a staggering £40,000-£50,000 by paying an extra seven years of National Insurance contributions.
He cautioned that the scheme will not work for everyone, with your ability to buy back qualifying years dependent on your circumstances - but insisted that "absolutely everybody" between the age of 40 and 73 should be checking now whether it could be beneficial for them.
"This is the most lucrative thing many people under age 73 can do - some gain literally tens of thousands of pounds. The deadline may be half a year away, but the process is not quick so you need to start now," he urged.
Martin advised that there are two key checks to make in order to see whether you need to apply before the deadline - the first is to see whether you are missing any National Insurance years since 2006. To do this, visit the GOV.UK website and check your National Insurance record.
The second check to make is to see whether you are on track to get your full State Pension via the Government's State Pension Forecast. If it says you are forecast to get £221.20 a week, this is the full amount - but less than this means you may need to top up your National Insurance contributions.
The average cost of buying an extra National Insurance year is £825, but this can be significantly lower depending on how much short you were of qualifying in any one year since 2006 - for example, if for one year you were only a week short of paying enough National Insurance contributions to qualify, you can top it up for as little as £15, and in some circumstances it may even be free.
From April 6, 2025, you will only be able to buy back National Insurance years dating back to 2019, so it's vital to check your record all the way back to 2006 now before you lose the chance to do something about it. More details can be found on the GOV.UK website.
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