Leading financial expert Martin Lewis has issued a crucial warning to individuals aged between 40 and 73, emphasizing that there are only a few days left to significantly increase their state pension. Lewis underlines the importance of taking action before the impending deadline to enhance their pension earnings by thousands of pounds. The opportunity to rectify any missing National Insurance contributions expires on Saturday, April 5, prompting Lewis to urge individuals falling within the specified age bracket to seize this chance promptly.
Speaking on The Martin Lewis Podcast, he stressed the gravity of the situation, labelling it as “serious, important and urgent.” Lewis highlighted that the cut-off date to fill in any gaps in National Insurance years from 2006 to 2019 is imminent, stressing that this action could potentially result in substantial increments to one’s state pension. He described this as one of the most lucrative pieces of advice he has ever imparted. Notably, the updated state pension system, established in 2016, pertains to men aged 73 and younger, born after April 5, 1951, and women aged 71 and younger, born after April 5, 1953.
Importantly, Lewis clarified that individuals do not have to reach the official state pension age in order to enhance their pension entitlements. He pointed out that various common circumstances, such as living abroad, career breaks, or insufficient earnings, may have caused people to amass missing years. Originally, a deadline of 2023 was set for individuals to repurchase these omitted years. However, due to an extension, there is now a final opportunity for eligible individuals to take action.
Despite the extended timeframe, Lewis emphasised that the ultimate deadline will not be extended beyond this week. He cautioned individuals that after the approaching deadline, only years from 2019 can be bought back, as opposed to years dating back to 2006, as current arrangements allow. Lewis elucidated that adding just one year of contributions typically results in an additional £330 annually towards one’s pension, an amount that is also safeguarded against inflation.
To determine whether they need to repurchase any National Insurance years, individuals are advised to review their State Pension forecast. Lewis disclosed that many individuals have informed him of experiencing increased pension payouts after acquiring missing years. One individual shared how purchasing 18 years’ worth of contributions led to an extra £5,916 annually, amounting to a substantial £118,000 in savings over two decades.
In conclusion, Lewis underscored the time sensitivity of this opportunity, urging eligible individuals to act promptly and maximise their state pension benefits before the impending deadline. The potential financial gains from rectifying missing National Insurance years could have a profound impact on individuals’ long-term financial security and retirement plans. Therefore, it is paramount for individuals within the specified age range to assess their eligibility and take the necessary steps to bolster their state pension before the looming cut-off date.