The savvy tip involves snapping up extra National Insurance (NI) years to pump up your state pension stash, and this gem was dropped in the latest MSE email blast. The newsletter laid it out simple: to bag the full state pension, you’ve got to have clocked up 35 years of qualifying National Insurance Contributions. Now, if you hit state pension age before April 6, 2016, you’re looking at a tidy sum of £221.20 a week with the full new state pension. Fall short on those 35 years of NICs, and you’ll pocket less cash.
The MSE crew pointed out that most Brits rack up their National Insurance Credits while they’re grafting away or claiming certain benefits. But hey, life happens, and some folks end up with gaps in their record when they take time off work. The MSE newsletter spelled it out: “AGED 40 TO 73 AND NOT DUE A FULL STATE PENSION? Boost it by turning £800 into £5,500+ (free for some).
To get the full state pension, you’ll need 35ish (only ‘ish’, as it can be more for some) complete NI years – most get these through working or claiming benefits. “If you’ve gaps in your NI record, check if you can fill them for free. If not, you can buy missing years from 2006 to 2016, which can be incredibly lucrative, though you’ll need to do it before 5 April 2025. Don’t leave it till then though, as it’s not quick.
We’ve full help on who should do this in boost NI years.” According to the MSE website, this tip is a “potentially unbeatable opportunity” for people aged between 40 and 73 with some British folks amplifying their state pension by over £50,000. The MSE team broke down how one full voluntary National Insurance year costs roughly £800 but could inflate your state pension annually by an additional £275. Previously revealed figures by Martin Lewis show that if a gentleman who’s reached age 66 lives 19 more years and a lady for 21 more years, then for each £800 shelled out, a man can anticipate a surplus of £5,300 in his pension while a woman could look forward to an additional £5,800.
The MSE’s chief highlighted that these numbers are estimations, given the intricate rules governing state pension and the varying amounts dependent on individual circumstances. You might be able to fill your National Insurance gaps for free, without having to buy any credits. For instance, if you’ve been on statutory sick pay and not earning enough for a qualifying year, you could be entitled to National Insurance credits. Those claiming benefits like Jobseeker’s Allowance and Employment and Support Allowance may also qualify.
More examples of how you might be eligible for NI credits can be found on the GOV.UK website. Before buying any NI credits, ring the Future Pension Centre for free at 0800 731 0175 to see if filling any gaps in your NI record would benefit you.
