Martin Lewis, a financial expert, has advised state pensioners born after 1951 on a way to potentially claim up to £5,400 for free. Lewis, well-known for his money-saving tips, has highlighted a strategy that could be advantageous for individuals aged between 40 and 73. He emphasized the opportunity for those born between 1951 and 1984 to take action before April 5, 2025. By purchasing any missing National Insurance years from 2006 to 2016, people could boost their state pension significantly.
The scheme Lewis outlines is based on the concept of ‘buying back’ National Insurance years, which directly impacts the amount of state pension a person receives upon retirement. He mentioned that having around 35 full NI years is typically necessary to receive the maximum state pension, with some individuals needing more based on their age and NI record. The ability to buy back up to six years has been extended due to high demand, allowing people to fill gaps in their NI contributions back to 2006.
Lewis stressed the importance of considering this option regardless of age, as it could result in substantial financial benefits. The potential gains from following this advice could exceed £50,000 for some individuals. This opportunity to boost state pension through National Insurance contributions is a valuable strategy that people should consider to secure their financial future.
The extension of the deadline to April 5, 2025, provides state pensioners with more time to assess their NI contributions and take the necessary steps to maximize their pension entitlement. Lewis’s advice aims to empower individuals to make informed decisions about their pension provisions and ensure they receive the full benefits they are entitled to. By being proactive and engaging with their NI contributions, pensioners can secure a more financially stable retirement.
In conclusion, Martin Lewis’s guidance on claiming up to £5,400 for free through National Insurance contributions presents a compelling opportunity for state pensioners. Taking proactive steps to review and potentially fill gaps in NI years can lead to significant financial rewards and ensure a more comfortable retirement. Pensioners are encouraged to consider this advice and take action before the extended deadline to make the most of their state pension benefits.