Martin Lewis urges people to check if you can boost your State Pension by thousands - here's how

Levi Winchester & Sonia Sharma

8 May 2024 at 11:42 am·2-min read

Martin Lewis has issued advice over pensions -Credit:ITV

Money Saving Expert Martin Lewis is advising people to carry out an important check to see if they can increase their State Pension by thousands of pounds.

It involves checking your National Insurance record to see if you have any gaps that need filling. Most people need 35 years - some will need more - to claim the full new State Pension. You normally need 10 years to get any sort of State Pension at all.

At the moment, you can pay to plug National Insurance gaps dating back to 2006 - but from April 2025, you'll only be able to pay for voluntary contributions for the past six tax years. Writing in the latest MoneySavingExpert.com newsletter, Martin explained how the most you'll pay to purchase a full year class 3 National Insurance contribution is £824. This then adds up to £328 each year to your pre-tax state pension.

Explaining the impact that could have on your pension over the course of your retirement, Martin said: "A man living for the typical life expectancy would get a total £5,400 back, a woman £6,100 as life expectancy is longer." He added: "While 'boosting your state pension' doesn't sound sexy, it's the MOST LUCRATIVE THING many can do with their money."

If you're self-employed, you can buy class 2 contributions for around £160 a year. To see if you'd benefit from purchasing missing National Insurance years, you should first check both your National Insurance record and your State Pension forecast. You should then check if you can plug any gaps for free, reports The Mirror.

For example, you may be able to get free National Insurance credits if you were entitled to Child Benefit but did not claim it, or if you are a grandparent and provided childcare. There are more examples of ways you may be eligible for National Insurance credits on GOV.UK. You also need to check if the gains from buying extra years may be reduced if it pushes you into the higher 40% tax bracket.

Contact the free Future Pension Centre on 0800 731 0175 before buying any National Insurance contributions to check if you'd benefit from plugging any gaps in your National Insurance record. If you're already at State Pension age, contact the free Pension Service helpline on 0800 731 0469.

OK! Magazine
Drivers warned that most car owners will be hammered with new £410 tax from next April
New rules will see many drivers forced to pay additional tax on their vehicle from next year. The so-called 'luxury' car tax would see motorists forking out £410 each year
The Telegraph
Pensioners face shock tax bills within weeks
Some 140,000 pensioners will be hit with tax bills in the next six weeks as a stealth raid on retirement incomes bites.
The Telegraph
‘A £25k gamble made me millions – then I got hit with a seven-figure tax bill’
Tucked away in a corner of Oxfordshire is what’s believed to be southern England’s largest barn complex. At 200 years old, they were built to last, and given they’re now Grade II-listed, they’re also here to stay.
The Telegraph
Foreign investor that loaded Thames Water with debt takes control of UK gas network
The former owner of Thames Water is to take full control of Britain’s gas network in a £700m deal.
The Telegraph
‘Why is it so hard to spend a £10 note in central London?’
I have a confession to make. Despite writing regularly about how important cash is for many, I rarely use notes and coins.
The Telegraph
Record 200,000 customers ditch BT Openreach broadband
BT has lost a record number of broadband customers to rival providers amid growing competition.
Fool.co.uk
Potentially 42% undervalued, is this FTSE 100 company a sleeping giant?
The FTSE 100 is full of opportunities for the patient investor, and I think I may have found one that merits a closer look. The post Potentially 42% undervalued, is this FTSE 100 company a sleeping giant? appeared first on The Motley Fool UK.
Fool.co.uk
Investing £10K into this FTSE 100 giant could bag me a second income worth £980
This Fool explains how dividend investing in the right picks could help build a second income stream, as well as one stock she likes. The post Investing £10K into this FTSE 100 giant could bag me a second income worth £980 appeared first on The Motley Fool UK.
Fool.co.uk
This FTSE 100 stock’s down 50%, and a director just bought 8,000 shares
Directors of this blue-chip company have been snapping up a load of its shares. Should I do likewise and buy the dip in this FTSE 100 stock? The post This FTSE 100 stock’s down 50%, and a director just bought 8,000 shares appeared first on The Motley Fool UK.
The Guardian
Rachel Reeves urged to crack down on wealthy tax avoiders
Calls follow Guardian undercover investigation as chancellor poised to reveal £20bn hole in UK finances
Fool.co.uk
This FTSE small-cap stock could rise 75% says one top broker
Our writer takes a look at a very interesting little FTSE stock and considers whether he should add it to his summer buy list. The post This FTSE small-cap stock could rise 75% says one top broker appeared first on The Motley Fool UK.
Yahoo Finance UK
Best UK savings accounts offering above inflation rates
See the best savings accounts to find a top-rated deal that works for you.
Fool.co.uk
5.5% dividend yield! Is this FTSE 100 stock a great buy for dividend growth?
A falling share price has supercharged the dividend yield on this FTSE 100 share. Here's why it could be a great passive income share for years to come. The post 5.5% dividend yield! Is this FTSE 100 stock a great buy for dividend growth? appeared first on The Motley Fool UK.
Simply Wall St.
Returns At Tethys Petroleum (CVE:TPL) Are On The Way Up
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
The Telegraph
How to avoid paying higher-rate tax, even if you earn £110,000
The new Labour government has confirmed that it will stick to the Conservatives’ plan to freeze income tax thresholds until 2028, which means millions of taxpayers face being dragged into a higher tax bracket in the coming years. However, by following our tips, and doing a bit of extra planning, even those earning £110,000 won’t have to pay higher-rate tax.
The Telegraph
Car insurance fraud: the latest tricks used by criminal gangs and opportunist drivers
If you have filled out a car insurance application and have been tempted to economise on the truth, you won’t be alone. Defrauding motor insurers is the most popular insurance fraud, making up six in 10 cases (59 per cent) according to the Association of British Insurers (ABI). Those doing it range from organised gangs, ripping off insurers on an industrial scale, to regular drivers opportunistically inflating claims.
Fool.co.uk
This FTSE 250 stock has smashed Nvidia shares in 2024. Is it still worth me buying?
Flying under most investors' radars, this FTSE 250 stock has even outperformed the US chip maker year-to-date. Where will its share price go next? The post This FTSE 250 stock has smashed Nvidia shares in 2024. Is it still worth me buying? appeared first on The Motley Fool UK.
Fool.co.uk
10% dividend increase! Is IMI one of the best stocks to buy in the FTSE 100 index?
To me, this firm's multi-year record of well-balanced progress makes the FTSE 100 stock one of the most attractive in the index. The post 10% dividend increase! Is IMI one of the best stocks to buy in the FTSE 100 index? appeared first on The Motley Fool UK.
The Guardian
Fears of automotive industry downturn as profits slide at Nissan and Stellantis
Carmakers announce disappointing results, and production in UK revealed to have dropped
Simply Wall St.
Top UK Dividend Stocks To Consider In July 2024
The United Kingdom stock market has shown stability over the last week and a modest growth of 4.5% over the past year, with earnings forecasted to grow by 13% annually. In this context, dividend stocks that demonstrate consistent payouts and potential for earnings growth are particularly appealing for investors looking to capitalize on current market conditions.

Latest stories