Martin Lewis is sounding the alarm for people aged 40 to 73, warning that a simple mistake could cost them tens of thousands in their pension. With the crucial deadline of April 5 fast approaching, the money expert stressed that failing to act now means the “door shuts forever” on a potential financial boost.
Taking to social media, Lewis urged people to check their National Insurance (NI) records, highlighting that many might be missing out on valuable contributions due to errors in their child benefit claims. “Pls share. If someone hasn’t checked this yet and is between the ages of 40 and 73, without exaggeration, it could be worth £10,000s, so check. If you miss it now, the door shuts forever on 5 April,” he warned, reported Belfast Live.
The issue stems from incorrect child benefit claims, which could mean thousands of people have been missing National Insurance credits—directly impacting their future state pensions. Lewis had previously revealed on his ITV show that around 200,000 people had claimed child benefits incorrectly, leading to shortfalls in their pension contributions.
One pensioner, Gabriel, shared his success story on The Martin Lewis Money Show, explaining how he managed to turn his financial future around by £32,000 after following Lewis’s advice.
Co-host Jeanette Kwakye read out Gabriel’s message: “After watching your show about pensions, I realized I had about 14 years of the shortfall. I asked for my wife’s child benefit NI credits to be transferred to my name, and I received 11 years of credit, increasing my pension by over £60 a week.”
Gabriel went on to explain that if he lived just 10 years beyond pension age, he would receive an extra £32,000 in pension payments. Lewis responded, pointing out that the financial benefit could be even greater: “Of course, typical life expectancy once you take your pension is double that, so it could be £60,000.”
The financial guru explained the widespread issue affecting thousands across the UK. “There are, I believe, 200,000 people in the country who had the wrong parent claim child benefit. If you’re working, you get National Insurance credits that count towards your pension. If you’re looking after a child, you also get NI credits.
“But if one parent works and the other doesn’t, and the working parent is the one claiming child benefit, then they’re already getting NI credits from work—so they don’t need them from childcare. Meanwhile, the non-working parent is missing out on these crucial credits,” he explained.
This simple mistake could mean losing out on thousands of pounds in state pension benefits, making it vital for parents to check if they are affected. The Money Saving Expert website strongly advises those who aren’t working or earn less than £123 a week to claim child benefit, even if their partner’s income means they have to pay some or all of it back. This ensures they still receive NI credits for their pension.
Since new claims can only be backdated by three months, Lewis is urging people to act fast. HMRC has also flagged that around 200,000 parents could be missing out on these essential credits because the higher-earning partner is the named claimant for Child Benefit.
If you think you might be affected, Lewis advises checking your National Insurance record and applying for any missing credits as soon as possible. For some, it could be the difference between a comfortable retirement or missing out on thousands of pounds in pension payments.
