Martin Lewis explains how the couple boosted their state pension by nearly £80,000

Martin Lewis has revealed how one couple managed to increase their state pension by almost £80,000 and warned that time is running out for others to do the same. The amount you receive from the State Pension is determined by your National Insurance record – most people will need 35 years to receive the full amount, although some may need longer.

If there are gaps in your National Insurance record, you can currently buy back the missing years from 2006 – but from April 2025, you will only be able to pay voluntary contributions for the last six tax years. “That’s a serious amount of cash,” commented Martin, sharing the story of a couple who boosted their state pension by £80,000 after paying £8,500 for years without National Insurance.

Speaking on the latest episode of ITV’s Martin Lewis Money Show, he said: “For some people you can do it for free – they paid £8,500 and got £64,000 if they have a typical life expectancy . Actually, that was before. the state pension was increased in April – it is now closer to £80,000. That’s the equivalent of what they’ll get. They have a lot of plans, it gave them financial freedom.

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Martin went on to explain that for every £800 or less you pay in a National Insurance contribution, it could add £5,400 or more to your State Pension over the course of your retirement. This is based on typical life expectancy. If you’re self-employed, you can buy Class 2 contributions for around £160 a year, the Mirror reports.

Martin said: “Millions of people are missing out on National Insurance years. You might have spent years abroad, you might have had a low income, a career break… So my call today is about checking now if you can buy the missing years. He also advised that those nearing retirement age should definitely do this check because the younger you are, the more time you have to build up enough qualifying years before reaching retirement age Of the state.

To determine whether buying back missing National Insurance years would be beneficial, they should first review their National Insurance record and State Pension predictions. After this, any gaps that could be filled for free should be identified.

For example, free National Insurance credits may be available if you were eligible for Child Benefit but did not claim it, or if you are a grandparent who provided childcare. More examples of eligibility for National Insurance Credit can be found on GOV.UK.

It’s also important to consider whether buying extra years could push you into the higher 40% tax bracket, reducing your earnings. Before buying any National Insurance contributions, contact the Free Future Pensions Center on 0800 731 0175 to check whether filling any gaps in your National Insurance record would be beneficial. If you have already reached state pension age, contact the Pension Service free helpline on 0800 731 0469.

A new service launched last month now allows people to buy voluntary National Insurance contributions online. However, this initial version is not available to those who have already started claiming their state pension or to those who want to fill gaps from periods of self-employment or work abroad.