Brits Have Less Than A Month To Do State Pension Boost Or Miss Out On Benefits

According to a leading financial journalist, Brits have just one month left to make a substantial boost to their state pension—and some may need to contribute up to £50,000 to secure their retirement.

ITV aired The Martin Lewis Money Show again on 4th March, featuring a pension-focused episode, particularly highlighting the National Insurance top-up, The Mirror reports. Martin Lewis, founder of MoneySavingExpert (MSE) website, opened the show with an urgent reminder that time is running out to take advantage of the National Insurance top-up scheme, with only a month remaining before the deadline.

Last Chance to Maximise Your State Pension

During the programme, Lewis explained that people can currently make payments to cover National Insurance gaps dating back to 2006. However, from April 2025, this window will shrink, allowing voluntary contributions for only the previous six tax years.

Those under 73 have until 5th April to improve their state pension for retirement, and it only takes a couple of easy steps. This date marks the final chance to make up for absent national insurance years between 2006 and 2018 – essential for maximising your state pension.

The government implemented this cutoff to allow individuals who could be affected by the new state pension transition to secure the entire payment. It applies to the years spanning 6th April 2006 and 5th April 2018, and citizens retain the option to rectify gaps within the most recent six-year period.

The deadline ends on 5th April 2025, after two prior extensions. HMRC reports that over 10,000 payments, totalling £12.5 million, have been processed through their recently launched online platform, which went live in April 2024.

Eligibility And Qualification Details

Most individuals require 35 complete years of national insurance to be eligible for the full new state pension. Purchasing one of these years costs £824, but it will guarantee a much larger return in the future.

Each additional qualifying year adds £328 per year to the state pension before tax—meaning the cost is recovered within three years. For someone who lives 20 years beyond the current retirement age of 66, this investment could pay back more than eight times the initial amount.

Sometimes, individuals might only need to contribute a small amount to complete a year, with some instances lacking only £10. Settling this small balance can raise yearly retirement earnings by several hundred pounds for some.

It's important to note that the current maximum state pension is £221.20 each week, so individuals expecting this level of payment are not required to act.

Small Top-Ups, Big Benefits

Lewis's Money Saving Expert service highlights the case of a woman who discovered eight years of absent national insurance contributions. By addressing them quickly, she faced a cost of around £6,500 but gained a £2,624 yearly increase in her state pension.

'I wanted to start with a beginner's guide, a really simple way, so you can understand how your National Insurance impacts the state pension. So your state pension is a piggybank,' Lewis explained.

'Now, think of National Insurance as a token you can get, and the more National Insurance years you have, the more of the state pension you will get. So, to add to your National Insurance year, you need to earn over £6,396 a year, and if you do, you get the National Insurance token, but if you earn less than £10 of that, you get nothing. This is binary. You either get it or you don't,' he added.

With a life expectancy of 20 years after retirement, this investment would yield £52,480 in total – easily recovering the initial expense. Individuals can access the HMRC website to pay for national insurance years or find more details.