Martin Lewis 6-month warning may see anybody below 73 pocket money
Money maestro Martin Lewis has dropped a bombshell tip that could see you pocketing over £5,400 if you act before April 2025. In his latest MoneySavingExpert (MSE) newsletter newsletter, the financial whizz has sounded the alarm with a ‘six-month’ heads-up on a ‘lucrative’ chance that’s too good for Brits to pass up.
Interestingly, it’s all about National Insurance and State Pension. He’s laid it out clear as day: “For each £825 or less you pay to buy National Insurance (NI) years, many gain £5,400+, but much closes in April. 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.”
The Government pockets NI contributions from workers and businesses to fund benefits and pensions in the UK. You can view just how much you pay by looking at your payslip, with the amount typically taken before your salary is issued.
But here’s the kicker – Martin’s urging Brits to give their NI record the once-over, especially if the State Pension isn’t on the horizon just yet. The key is spotting any ‘missing full years since 2006’, which might happen if you’ve had a career gap, lived overseas, or been on a low income.
To bag a full State Pension, the 52-year-old explained that you’ll need to have at least 35 full NI years on record. If you’re short, buying extra years could be your golden ticket.
(Image: Getty Images)
A 2016 HMRC scheme could allow workers to ‘buy back years to 2006’ instead of the typical ‘back six years’. The deadline for this was initially set for April 2023, but it’s now been extended to April 2025.
You can do this online or ring HMRC’s phone line for assistance. HMRC also explains: “You have until 5 April 2025 to pay voluntary contributions to make up for gaps between tax years April 2006 and April 2016 if you’re eligible.
“After 5 April 2025 you’ll only be able to pay for voluntary contributions for the past six years. This may not be enough to qualify for a new State Pension if you have fewer than four qualifying years on your National Insurance record. You’ll usually need at least 10 qualifying years in total.”
A typical employee NI year costs between £800 and £825, while self-employed years may cost £160, the MSE newsletter added. “Each extra NI year typically adds £329 annually to your State Pension,” the gurus continue.
“A 66-year-old man living for the typical life expectancy would get a total of £5,400 back, a woman £6,100.”
If you’re keen to work this out for yourself, it may be worth checking out MSE’s simple State Pension NI contribution top-up calculator.
