Martin Lewis, a renowned financial expert and broadcaster, has issued an important call to action for individuals born before 1979. He highlights a unique opportunity to significantly increase their state pension by filling gaps in their National Insurance contributions (NICs). According to Lewis, taking advantage of this option before the April 2025 deadline could result in an additional pension value of up to £74,000 over time.

The Importance of Addressing Gaps in Contributions

Speaking on the matter, Lewis explained that individuals aged between 45 and 73 should check for any missing years in their NICs record, particularly between 2006 and 2018. By purchasing these missing years, they could potentially enhance their annual pension payments by a substantial amount.

“For every £800 spent to cover a missing year, you could see your annual state pension increase by £6,100,” Lewis explained. However, he cautioned that time is of the essence: “You need to consider this year whether to fill gaps from 2006 to 2018 because the window to buy back those years closes next April.”

Strategic Decisions for Different Age Groups

Lewis emphasized that the opportunity is particularly beneficial for those nearing retirement. “If you’re close to state pension age, it’s a straightforward decision. The older you are, the more likely it is to be worth buying missing years,” he said. However, for individuals who already have complete records for years after 2019, Lewis suggested waiting and reviewing their options closer to retirement age.

For younger individuals, under 45, Lewis explained that the benefits may not be as impactful unless they can purchase partial years at a significantly reduced cost. “If you find a year available for something like £16, it’s worth buying it now. It’s a small investment for potential future benefits,” he said.

Key Warnings and Considerations

While Lewis praised the potential financial gains, he also issued several important warnings to ensure people make informed decisions.

1. Meeting the Minimum Requirements:
   Lewis reminded people that a minimum of 10 qualifying years is required to receive any state pension. “If you currently have only three years, buying additional years won’t help unless you can reach the 10-year threshold. But if you’re close to 10 years—say you have nine years—purchasing one more could dramatically increase your pension value.”

2. Potential Downsides:
   He also highlighted potential complications, such as how boosting contributions might affect pension credit eligibility or push individuals into a higher tax bracket. “For some, increasing their state pension could mean losing access to other benefits or facing unexpected tax implications,” Lewis warned.

3. Balancing Costs and Longevity:
   Lewis described the decision as part science, part art. “The financial benefit depends on how long you live. Statistically, most people will live long enough for this to be a lucrative decision, but it’s essential to weigh this against the upfront costs.”

A Final Push Before the Deadline

With the April 2025 deadline approaching, Lewis urged eligible individuals to act quickly but carefully. He recommended thoroughly checking their NICs record through the UK government’s online services or consulting with a financial adviser. This is especially crucial for those nearing retirement age, as the potential benefits could significantly impact their financial stability in later life.

For many, filling these gaps represents an exceptional opportunity to enhance their state pension, provided they navigate the process wisely and take into account their personal circumstances.