Martin Lewis, the money expert, has issued an urgent warning for people to check their National Insurance (NI) record before the April 5 deadline. He said that those aged between 40 and 73 could be missing out on potential pension boosts worth over £10,000 if they do not act. The opportunity to fill gaps in NI records applies to men born after 5 April 1951 and women born after 5 April 1953, according to the Money Saving Expert site.
Lewis advised a woman named Holly on whether to pay voluntary NI contributions to fill gaps in her record. He said the first step is to check your state pension projection on gov.uk to see if you are predicted to get the full state pension. If you are, topping up gaps is probably overkill because you cannot get more than the full state pension, Lewis explained.
That's a really interesting question.
Each missing qualifying year could reduce your state pension by around £300 to £330 a year, according to Rebecca Lamb, external relations manager at Money Wellness. Buying one full NI year typically adds £6.89 a week to your state pension entitlement, multiple reports indicate. In the UK, you need at least 10 qualifying years on your National Insurance record to receive any new State Pension, according to major media sources. You can only buy NI contributions up to six tax years ago, Lamb said.
A qualifying year on your NI record can be achieved by working and making National Insurance contributions, or through credits for unemployment, illness, being a parent or carer, living or working overseas, or paying reduced rate NI as a married woman, according to major media sources. Lewis disclosed that roughly 200,000 people had the wrong parent claiming child benefit, potentially missing out on NI credits. A pensioner named Gabriel increased his pension by £32,000 after following Martin Lewis's advice to transfer child benefit NI credits from his wife.
The first thing I'd do is I'd go and look at your pension projection. On your pension projection, your state pension projection, which is on gov.uk, are you predicted to be able to... get that you will have the full state pension when you retire, which is a very long time away? If you are, I think this is probably overkill, because it's not like once you get to the full state pension, you earn more NI years, you get even bigger than the full state pension. It doesn't work like that.
The full new State Pension is currently worth £241.30 a week or £12,547.60 a year, according to major media sources.
Pls share. If someone hasn't checked this yet and is between the age 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.
If I live 10 years after pension age, I'll get an extra £32,000. So thank you so much.
Of course, typical life expectancy once you take your pension is double that, so it could be 60 grand.