Martin Lewis tells everyone with a state pension to act fast to get free £5,400 (original) (raw)

Martin Lewis has issued a warning to state pensioners born after 1951 about a useful strategy that could net them £5,400. The ITV regular suggests that this method could be beneficial for anyone aged between 40 and 73.

Mr Lewis stated: "There is a potentially unbeatable opportunity everyone aged 40 to 73(ish) needs to consider. This alert implies that anyone born between 1951 and 1984 might need to take action. You have until 5 April 2025 to buy back any missing national insurance years from 2006 to 2016.

"This could prove extremely profitable, with some people set to gain over £50,000 in boosts to their state pension by following this guide. " He also emphasised the importance of considering this option even if you are under 40, indicating that there may still be money to be made, reports Birmingham Live.

LATEST: Nationwide issues major warning to savers

The scheme he outlines is based on the idea of 'buying back' National Insurance years. The amount of your state pension upon retirement depends on the number of full 'qualifying' national insurance (NI) years you've accrued. For money-saving tips, sign up to our Money newsletter here

Mr Lewis said: "Most collect NI years through working and paying NI, but you can also get them if you're claiming benefits or caring for others (if you're not sure what this is about, see how the new state pension works). In general, you need around 35 full NI years to get the maximum state pension, though some will need a lot more (we've seen examples of people needing 44+ years) depending on your age and NI record up to now.

"Normally you can buy back up to six years, but when the 'new' state pension was introduced, transitional arrangements were put in place to let you plug gaps all the way back to 2006. This was due to end on 5 April 2023, and then 31 July 2023, but because so many people were trying, the necessary government phone lines got clogged up (mainly due to Martin shouting from the rooftops about it). So the date has been extended to April 5 2025."

Story Saved

You can find this story in My Bookmarks.Or by navigating to the user icon in the top right.