Martin Lewis fan explains how they boosted their state pension by £28,000
A Martin Lewis fan shared how they managed to top up their state pension by a whopping £28,000 after following the MoneySavingExpert's advice.
On the recent Martin Lewis Money Show episode, a fan wrote in to thank the MoneySaving Expert for his tip on National Insurance contribution top ups.
Brian wrote in to say he had topped up his National Insurance Contributions recently after hearing about Martin's campaign.
He said they had paid £4,070 overall which would give them an extra £1,400 of state pension per year at today's pension rate.
He wrote: "Thank you so much, without you I would never have thought of checking."
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Responding to the message, Martin highlighted that the pension rate also goes up with inflation.
He also noted that the average life expectancy after you get your state pension is 20 years.
He said: "So 20 times by £1,400 is £28,000. They have paid £4,000 and the likely return on this is around £28,000 - and it's inflation proofed."
Over the last few months, the MoneySavingExpert has warned people between the ages of 45 and 70 to check their National Insurance records.
This is because a major deadline was fast approaching.
Anyone between these ages is currently to buy missing National Insurance contributions going back to 2006.
Martin reiterated how important this was because you need 35 years on your National Insurance record to claim the full new state pension.
If you have fewer years than this, your state pension will be smaller - and you need ten years to get anything at all.
The deadline for being able to buy for those years was to come to an end on April 5, 2023.
However, the Department for Work and Pensions (DWP) phone lines became jammed as too many people were trying to contact them.
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This forced the Government to extend the deadline from April until July 31, 2023.
In its announcement this week, the Government said that it had "listened to public concerns and had acted on them".
This means you have more time to buy missing years if you have them between 2006 and 2016.
After the now July 31 deadline, people will only be able to purchase missing National Insurance contributions for up to six years.
Before you go buying any National Insurance contributions, you should also see if you're able to plug your NI gaps for free.
There are examples of ways you may be eligible for Naitonal Insurance credits on the GOV. UK website.
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