Martin Lewis has warned that millions of Britons could be missing out on a £68.90-a-week boost to their retirement income because they do not have enough National Insurance (NI) contributions. The warning came after a listener to his show asked about a relative approaching their 40s who had never worked, claimed benefits or built up any NI credits.
Explaining the rules, Mr Lewis said the state pension system has a “hard bottom and a soft top”, meaning there is a strict minimum threshold for getting any pension at all. He said NI contributions can be built up through employment or through certain benefits, including credits available to some parents and carers.
Mr Lewis stressed that to get any state pension, you need 10 years of NI credits. Someone with only nine qualifying years who buys one extra year could unlock payments worth around £68.90 a week under current rates, instead of receiving nothing. The full new state pension is currently worth £241.30 a week, or around £12,550 a year, and typically requires about 35 qualifying years.
He also reminded those with little or no state pension entitlement that Pension Credit could provide valuable support. Pension Credit tops up income to a minimum level and can open the door to extra help, including council tax support and free TV licences for eligible households aged 75 and over.
