Martin Lewis, the prominent financial advisor and founder of MoneySavingExpert, has recently addressed a critical financial opportunity concerning potential windfalls in state pension entitlements. Lewis has advised individuals born between 1951 and 1984 to assess their eligibility to buy back missing National Insurance (NI) years. This initiative may significantly enhance their future state pensions.
Lewis stated, “There is a potentially unbeatable opportunity everyone aged 40 to 73(ish) needs to consider.” The scheme permits individuals to purchase back National Insurance contributions from the years 2006 to 2016, a move that could potentially increase some pensioners’ income by £50,000 over time. The deadline for taking advantage of this opportunity is April 5, 2025.
Highlighting the extensive benefits, Lewis explained that individuals with gaps in their NI record could increase their pension by £5,400 by filling in missing years. The opportunity has been extended due to high demand and operational challenges with government communication lines. Initially set to close in April 2023, the deadline was adjusted to allow more people to benefit.
Those under 40 are also advised to examine their NI records, as making up contributions now could secure a larger pension later, even if retirement seems distant. Lewis emphasized that while most individuals accrue NI years through employment, additional credits are available for those claiming benefits or providing care.
In conjunction with tackling rising living costs, a recent case in Lewis’s MoneySavingExpert community illustrates significant saving opportunities in home insurance. Fiona, a member, followed Lewis’s advice against auto-renewing her insurance policy. Upon receiving a renewal quote of £866 for her home, she opted to explore alternative options using comparison websites. This decision resulted in securing the same coverage for £443, thus saving £423.
Lewis advocates using multiple comparison platforms to ensure the best insurance deals, emphasizing the substantial premium increases reported by the Association of British Insurers (ABI). The ABI noted a 19% rise in home insurance premiums compared to last year’s figures, reaching an average of £375 for combined building and content policies. Fiona’s experience serves as a potent reminder amidst surging insurance costs, highlighting the need to consider multiple quotes rather than settling for an initial renewal offer.
