Martin Lewis is calling on Britons to take immediate action to boost their state pension payments by up to £50,000 as a crucial deadline fast approaches.
On April 5, 2025, the window closes for people to buy back missing National Insurance years dating back to 2006. After this date, savers will only be able to fill gaps from the previous six years.
The host of The Martin Lewis Money Show Live has warned this opportunity could be worth “tens of thousands of pounds” to those with incomplete National Insurance records.
The deadline has been extended twice before, but analysts believe this will be the final chance to secure these valuable pension top-ups.
Lewis shared: “Let’s make this really plain. Right now, you can buy back any missing years from 2006. From April 6, you can only go back to 2019. So there are 13 years which you are going to lose access to.”
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Martin Lewis is issuing a warning about a looming state pension deadline
GETTY
The financial expert described the deadline as “urgent” and warned people could “lose the opportunity” if they missed it.
“This is an opportunity you can’t afford to miss,” he stressed. Lewis explained that filling these gaps could boost pensions by “tens of thousands of pounds” over a retirement period.
The chance to claim backdated National Insurance credits applies to men born after April 5, 1951 (maximum age 73) and women born after April 5, 1953 (maximum age 71).
In order to qualify for the full, new state pension, Britons need to have 35 years worth of National Insurance contributions under their belt.
“Think of National Insurance as a token you can get each year to fill that piggie bank,” Lewis explained. “The more National Insurance years you have, the more of the state pension that you get.”
Many people have gaps in their records due to low income, career breaks, time abroad or not claiming credits correctly.
Each year of claiming back NI contributions costs £824 to purchase, but provides an extra £328 annually in state pension pre-tax. Analysts note the investment pays for itself in less than three years.
For someone who lives 20 years beyond retirement age, currently 66, the investment will be worth more than eight times the original amount. The full new state pension is currently £221.20 a week.
Jon Greer, head of retirement policy at Quilter, noted: “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.”
In total, this opportunity could be worth up to £50,000 over retirement. On The Money Saving Expert website, the journalist uses the example of a woman who found she had eight years’ worth of National Insurance contributions missing, paying them as promptly as she could.
This would have cost her up to £6,500, and boosted her state pension by £2,624 a year. If she lives for 20 years past retirement would be worth £52,480 overall.
Lewis recommends a step-by-step approach to determine if topping up is worthwhile. First, check for missing National Insurance years since 2006 and an individual’s state pension forecast on the Government’s website
LATEST DEVELOPMENTS:
Next, he suggests that people can plug any gaps for free with National Insurance credits, which can be earned through various scenarios including caring for children, statutory sick pay or jury service.
If there’s still a shortfall and gaps between 2006 and 2016, decide whether to top up before the deadline. The Money Saving Expert calculator can help determine what topping up could be worth.
The Department for Work and Pensions (DWP) has recently “softened” the deadline for certain applicants. Those who request a callback from the DWP before April 5 may still be able to buy back missing years after the deadline passes.
HM Revenue and Customs (HMRC) reports that more than 10,000 payments worth £12.5 million have been made through their new digital service, which launched in April 2024.
