Martin Lewis has provided a 'life-changing' bit of financial advice for millions across the country.
Appearing on the Martin Lewis Show on Tuesday evening (Jue 13), the money-saving expert said this particular episode was a "must watch for 45 to 70-year-olds". He examined pensions and shared how his piece of advice could add up to tens of thousands of pounds to someone's state pension.
Martin first explained what exactly a state pension was, how to get one, and what "missing National Insurance years" was. He explained that a person would need around 35 years of National Insurance Contributions (NICs) in order to receive the new full state pension, however, Martin added that for "some it can be 30 years and others 40".
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If someone doesn't have a full year, this is known as a 'gap'. He also highlighted that people could miss out on their full pension because of their missing National Insurance years - however, there are opportunities to make this up.
He added that the deadline for paying voluntary contributions towards a state pension has been extended. While initially it was supposed to end next month, people can now take advantage of the scheme until April 2025.
"You need to check if you're missing national insurance record to see if you have missing years," Martin said. "If you're missing national insurance years, then you need to check your state pension forecast and whether you can improve your forecast.
"If you have a shortfall, you need to ask whether it is worth buying years - if you're aged 45 to 70, it's actually more for people aged 50 but ive lowered it a little, you should consider whether you need to add on years."
How to check for gaps in your National Insurance record
People can check their NI record for free by heading over to Gov.uk and using their state pension forecast calculator. Once this has been done, Martin advises to call the Future Pension Centre on 0800 731 0175 which can provide one-to-one advice on whether it is worth paying into your pension.
Some people may be eligible fo credits which can be used to top up a NI record. Martin highlighted that tougher viewers should refrain from calling the future pensions line so people who are close to state pension age can get ahold of the service.
He noted that the helpline has been 'rammed' because of the increased demand for the service - something Martin attributed to his public campaign. He added: "You can either in some cases get some National Insurance years for free, or you will pay up to £800-ish for a National Insurance year.
"For some people, it could be a lot cheaper than that and for each year you buy if you don't have the full state pension, it will add £250 a year to your pension. So you pay £800, it adds to £250 a year, the break even point is three years."
According to Martin, top-ups could add several thousand of pounds onto an individual's state pension. One success story shared on the show includes how one person was able to add £14,000 to their state pension pot while another added £26,000.
One person was even able to add a hefty £95,000.
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