Martin Lewis urges thousands to turn £824 into £5,500 with one phone call
Martin Lewis is urging pensioners to get thousands of pounds added to their State Pension with just one phone call before a looming HMRC deadline.
The MoneySavingExpert founder has warned that pensioners have less than six months left to buy any missing National Insurance (NI) contributions they may have, which could add £10,000s to their pension pot.
HMRC launched an online tool earlier this year to allow people to check if they have any gaps in their NI record and calculate if making a payment will boost their State Pension.
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According to HMRC, more than 10,000 have increased their pension pots by a combined £12.5 million over the last six months but the deadline to make voluntary NI contributions is fast approaching.
Pensioners have until April 5, 2025 to buy NI contributions and potentially add thousands to their State Pension. After this deadline, you’ll only be able to make NI contributions for the previous six tax years.
Martin Lewis says that pensioners can spend as little as £824 on ‘buying’ a missing year in their NI record to get £5,500 back.
But HMRC has warned that not everyone will get access to the online tool before the April 2025 deadline, so pensioners are urged to act now. You won’t be able to use the tool to plug gaps in your NI record if:
You're already over State Pension age
You've been self-employed for any of the years you're trying to pay for
You've lived abroad for any of the years you're trying to pay for
You're a woman who holds a valid Married Women's Reduced Rate Election certificate
You're eligible to apply for Home Responsibilities Protection
Your NI record is currently being updated
If any of the above conditions applies to you, you’ll instead have to call HMRC to check and buy NI years. If you are at State Pension age you can contact the Pension Service on 0800 731 0469, and if you aren’t at State Pension age you can contact the Future Pension Centre on 0800 731 0175.
Martin Lewis said: “Boosting your state pension by back-claiming or buying missing National Insurance years is one of the single most lucrative things you can do. Many people have been in touch to say they're likely to gain £10,000s from it.
“So it's frustrating that HMRC now says its streamlined online process won't be available to everyone in time for the likely rush ahead of the 5 April deadline. This is a worry.
“Huge demand meant phone lines were clogged in the run up to previous deadlines – so much so that the original April 2023 cut-off date was pushed back twice to stop people missing out – and it's that same deadline that now approaches.”
A HMRC spokesperson said: “Those unable to use the online tool can apply over the phone. We always prioritise resources as needed to manage spikes in demand on our helplines, particularly for upcoming deadlines.”