Martin Lewis is urging people to check if they can add as much as £79,000 each to their state pension – if you’re the right age – because time is running out.
The money saving expert returned this week with more key financial advice, including a bombshell warning on state pensions.
Martin explained on ITV1 and ITVX during his Martin Lewis Money Show Live how the deadline is fast approaching to buy back missing National Insurance years in your history.
Each year you have in your history adds up to £6,100 to your pension pot per year, so you could end up raking in an extra £79,000 if you check and find you’re missing 13 years, which is the maximum it’s possible to buy back.
And because of the ‘triple lock’ on pensions, that £79,000 is only going to climb higher every year as inflation and wage growth pushes it up further.
Because the amount you get in your state pension depends on how many years of National Insurance contributions you have on record, if you’re missing years from your record you could boost your state pension massively by buying them back.
For every £800 you could add £6,100 per year to your pension pot, Martin told his viewers.
And how worthwhile it is will increase as you get closer to retirement age.
Martin told his viewers: “IMPORTANT: Are you under age 73?
“For each £800 or less you pay, you could gain £5,400 or more.
‘New state pension. Men born after April 5 1951, women born after April 5 1953.
“Check now if you can buy missing years – it ends this tax year.
“If you have gaps between 2006 and 2018, you need to think about this this year because you can only do it until next April.
“If you’re nearly at the state pension age it’s easy to see, it’s pretty obvious that you should be buying them.
“After April 5 2025, you can only buy back six years – so 13 years are closing.”