Martin Lewis has outlined crucial rules around the state pension, explaining how a simple change to National Insurance contributions could significantly increase payments. On his BBC podcast, a listener asked about a family member approaching 40 with no NI contributions, having never worked or claimed benefits. Lewis clarified there is a 'hard bottom and a soft top' when it comes to state pension entitlement.
National Insurance contributions explained
'For those who don't know, National Insurance contributions are when you work or if you get certain benefits if you look after children, you get a National Insurance credit,' Lewis said. 'I think of it like a token - for each year that you work, you get a National Insurance credit - a token that goes into the piggy bank.'
The consumer champion noted that generally, 35 years of NI contributions are needed for the full state pension, but this varies. 'I generally say you need 35 years worth-ish of National Insurance to get the full state pension. But it really is in 'ish-'. For some people it's more, for some people it's less,' he added.
The 10-year minimum rule
Lewis emphasised the critical threshold: 'The bottom is a hard bottom, because to get any state pension, you need 10 years of National Insurance credits.' Without 10 qualifying years, no state pension is payable. However, purchasing missing years can be transformative.
He highlighted a case where a person with nine years of contributions bought just one additional year, which proved 'hugely valuable.' This moved them from zero entitlement to roughly a third of the full amount. Under current rates, the full new state pension is £241.30 weekly (£12,550 annually). With 10 qualifying years, recipients get £68.90 a week, boosting annual income by £3,582.80.
Recouping costs quickly
Lewis noted that within three months of receiving the state pension, the person would recoup the cost of purchasing the missing year. The option to buy additional years covers up to six previous tax years, making it a strategic move for those close to the 10-year mark.
Pension Credit as a safety net
For those with very low income and no state pension, Pension Credit provides a top-up. Lewis explained: 'The obvious thing for someone with no or low income is Pension Credit. Pension Credit is effectively a top up to any or no state pension that you get, to give you a minimum income.'
Pension Credit is available from state pension age (currently 66, rising to 67 between April 2026 and April 2028). It supplements income to £238 weekly for singles and £363.25 for couples. Additional amounts are available for severe disability (£86.05 weekly) or caring for another adult (£48.15 weekly).
Gateway to other benefits
'Pension Credit interestingly is actually a gateway benefit that opens up access to a whole other load of benefits,' Lewis said. Claimants can receive council tax reductions, housing support, help with NHS charges, and a free TV licence for those aged 75 and over.
