Martin Lewis issues warning to anyone under 73 | Personal Finance | Finance

Money-saving guru Martin Lewis is issuing an alert those under 73 that there’s a critical “lucrative” opportunity to ramp up their State Pension sum by a hefty margin, potentially scooping tens of thousands before an essential cut-off date next April. The founder of MoneySavingExpert.com is urgently imploring everyone not to miss out and perform two simple checks to guarantee they’re pocketing the peak New State Pension of £221.20 weekly or are on the optimal trajectory to do so.

In his latest MoneySavingExpert.com newsletter, Lewis said you should top up your National Insurance record by snagging any missing years through HM Revenue and Customs. He said that for “each £825 or less you pay to buy National Insurance years, many gain £5,400 or more.”

He added: “It’s the MOST LUCRATIVE thing many under age 73 can do, some gain £10,000s. The deadline’s half a year away, but the process ain’t quick, so start now.”

With retirement looming for many, it’s vital to recognise that snagging the full New State Pension typically demands about 35 years of National Insurance contributions—but that is merely an average, as those who were ‘contracted out’ may find themselves needing to chip in more, reports the Daily Record.

Money-saving expert Martin has highlighted the importance of checking your National Insurance (NI) record for any gaps that might potentially reduce your State Pension amount. He advises that while NI years required for the State Pension are typically accumulated through work, parental duties covered by Child Benefit, or some benefits from the DWP, he warns: “many are missing past NI years, commonly due to years abroad, low incomes, career breaks or not claiming credits”.

It’s suggested to carry out two essential checks posthaste; they’re straightforward and can identify any shortfall in your State Pension.

Check 1: Examine your NI record

Step one is a review of your NI record: Go to GOV. UK where you can swiftly look into your National Insurance contributions and pinpoint any anomalies.

Check 2: Inspect your State Pension forecast

The next step is scrutinising your State Pension forecast: For a reliable idea of your expected income in retirement, navigate to the ‘Check your State Pension forecast’ page on GOV. UK.

By conducting these reviews, you’ll discover whether you’re on target to receive the full New State Pension – should that be the case, excellent news. Otherwise, there may be easy avenues to bolster your future pension at no extra cost.

Martin points out three prime strategies to potentially improve your State Pension for free.

• Child Benefit – check for missing NI credit.
• Grandparents providing childcare – Martin explained: “If a family member looked after a child under-12 at any time since 2011, before they were State Pension age (even if they are now) as parents/guardians were working, then the parent can apply to transfer their child care credit to the family member.”
• Carer’s Credit – this is a free NI credit for those aged 16 to State Pension age who provide unpaid care

He also highlighted a crucial tip for those providing childcare: “If a family member looked after a child under-12 at any time since 2011, before they were State Pension age (even if they are now) as parents/guardians were working, then the parent can apply to transfer their child care credit to the family member.”

He also delved into the benefits of Carer’s Credit, a free NI credit for unpaid carers aged 16 to State Pension age. For those approaching or at State Pension age, Martin advises that buying missing NI credits is a “no-brainer” as it pays off during retirement.

For individuals aged 45 to 60, it’s less certain but still worth considering. However, for those under 45, it’s typically not necessary due to ample time to accrue NI years.

Purchasing missing NI years costs about £825 for a full year, which translates to 1/35th of a year’s State Pension, approximately £329, making the investment return in roughly three years. Martin stresses the importance of verifying the value of buying these credits with the DWP before proceeding.

Martin clarified that the maximum amount you’ll pay for a missing year is £825, but it could potentially increase your retirement income by over £5,400. However, before making any decisions, it’s crucial to seek advice as calculating whether to top up can be complex and ultimately, there’s no point in paying for more years than necessary as you won’t get that money back.

The best course of action is to contact the UK Government’s Future Pension Centre on 0800 731 0175 to verify how many years you can purchase and whether voluntary contributions will enhance your State Pension. Those who have already reached retirement age should reach out to the Pension Service on 0800 731 0469.