Martin Lewis' MoneySavingExpert (MSE) team has issued urgent advice for Brits aged 40 to 73 to check if they are missing out on a 'potentially unbeatable opportunity' regarding their State Pension. Many individuals approaching state pension age may be unaware of missing National Insurance (NI) credits, which determine the amount they receive upon retirement.
Understanding State Pension Requirements
To qualify for the State Pension, you need at least 10 qualifying NI years. The more years you have beyond that, the larger the proportion of the £241.30 weekly payment you receive once you reach the eligible age. For the full amount, you need at least 35 qualifying NI years.
Some people are missing state pension years, particularly those who have worked abroad, earned a low income, or taken career breaks. MSE experts reveal that buying back missed NI years can result in thousands of pounds in additional pension income.
Strict Deadline for Buying Back Credits
You can claim back the previous six years, with a strict deadline of April 5 each year. Specifically, you have until April 5, 2027, to claim back years up to 2020. The MSE team explains that topping up may not be beneficial for those under 40, as they have time to fill gaps naturally. However, those aged 40 to 73 should consider buying back the past six years if they have gaps.
Real-Life Example
One woman, Martine, shared that after listening to Martin Lewis' podcast, she checked her NI contributions and found she had eight years missing. She paid six years and plans to pay the next two, resulting in an extra £49 per week, which she called 'considerable'.
Free Ways to Fill Gaps
Paying for extra NI credits might not be necessary for everyone. MSE experts note that some scenarios automatically build up NI entitlement, including:
- Caring for a child in the family (if aged between 16 and State Pension age)
- On Statutory Sick Pay (and not earning enough for a qualifying year)
- Unemployed and actively looking for work (proof required)
- On Employment and Support Allowance
- Caring for a sick/disabled person (at least 20 hours a week)
- On jury service (unless self-employed)
- Wrongly imprisoned
- Foster carer since April 6, 2010
- On Statutory Maternity, Paternity, or Adoption Pay
- Spouse of a member of the armed forces on overseas posting
- On a Government-approved training course (over 18, not sent by Jobcentre Plus)
How to Check
According to Gov.uk, if you are below state pension age, contact the Future Pension Centre to see if voluntary contributions would benefit you. If you have already reached State Pension age, contact the Pension Service instead.
