On the show, Martin explained that you can currently pay to plug National Insurance gaps dating back to 2006, but from April 2025, you’ll only be able to pay for voluntary contributions for the past six tax years
Martin Lewis has issued an urgent warning to people aged between 40 and 73 ahead of a major Department for Work and Pensions (DWP) deadline next month.
The Martin Lewis Money Show returned to ITV screens this evening, and today, it was the pension special – in particular, it’s the National Insurance top-up special. The Money Saving Expert (MSE) website founder opened the show by telling viewers that it was the “final countdown” for the National Insurance top-up deadline as there is only one month left.
On the show, Martin explained that you can currently pay to plug National Insurance gaps dating back to 2006, but from April 2025, you’ll only be able to pay for voluntary contributions for the past six tax years. Most people need around 35 qualifying years on their National Insurance record to get the full new state pension and ten years to receive anything at all. Although, Martin noted that the 35-year target is “ish”, as for some, it can be different. If you have missing years, and you top up – you could add potentially tens of thousands of pounds to your state pension.
Martin explained: “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.
“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.”
Have you plugged gaps in your National Insurance record to boost your state pension? Let us know: mirror.money.saving@mirror.co.uk
The MSE founder said that often people have “partial” years and would benefit “significantly from topping up.This is because only a full year’s contribution counts, so if you have a partially paid year, it can actually be “very cheap” to buy the rest – potentially as little as £16.
He added, however, that “Whether you should top up depends on the pension age. If you are just a few years from the state pension age, it’s easy to see if it is a win. If your forecast is low and you’ve got missing years, it could be a no brainer, and you should top up so the sooner you do this, the better. It really important to hurry up now.
“Those who are aged 45 to 60 are – it’s less definite – but you’ve got time to earn more national insurance years in future. So it tends to be best for those who are nearer 60, because you’re near that that mark. If you’re younger? you could wait and see a bit later if it’s worth buying back, because you can still buy those years back after the deadline.”
To buy back the years, Martin shared that the DWP and HMRC launched a joint online service that allows you to check your state pension forecast and buy contributions for the years you need them. You will need to log in to the new digital service using your Personal Tax Account login details, and those without an online HMRC account can register on GOV.UK. However, you can’t use it if you’ve already started claiming your state pension or if you’re looking to fill gaps from when you were self-employed or working abroad.
However, before paying any National Insurance, Martin said you should check whether you could plug the gaps for free – which could potentially save you “thousands.” There are many instances where you are eligible for National Insurance Credits, and usually, they are added automatically, however, in some instances, you will need to claim them.
For example, you may be entitled to National Insurance credits if you were claiming statutory sick pay and not earning enough for a qualifying year. Those who claim benefits such as child benefits, job seekers’ allowance, and employment and income support allowance may also qualify for national insurance credits. You can find more examples of ways to get free National Insurance credits on GOV.UK.
Martin also shared that anyone who cannot reach the DWP helpline can log an inquiry with the Future Pension Centre and request a callback. As long as you do this before April 5, you will still be able to make payments after this deadline. He added: “You should fill in the form and I would take a screen grab of my details so you have a recording to use in a dispute form if that comes to it.”
Contact the free Future Pension Centre on 0800 731 0175 and if you’re already at state pension age, contact the free Pension Service helpline on 0800 731 0469. Before making any voluntary National Insurance contributions, check if you’d benefit from claiming National Insurance Credits – these are free and can be claimed if you were claiming benefits or had caring responsibilities.
