Check state pension before deadline as it could make you thousands

Pension: Claer Barrett shares tips to maximise your state pension

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Money expert Claer Barret appeared on ITV’s Lorraine earlier today to urge people of all ages to go online and check their state pension to see if they have enough National Insurance (NI) contributions before the rules change in April 2023. People are usually only entitled to the full new state pension if they have 35 years’ NI contributions but Britons may benefit by paying to fill in any gaps before the deadline. It will cost them £800 or more – but could save them thousands.

Not everyone is entitled to the full new state pension – to get the full amount, people need to have 35 years of NI contributions, while some may fall under the basic state pension rules.

Some people miss out on pension money, especially women who take time out to look after children, but there is a way to make sure people are getting what they deserve.

On ITV’s Lorraine today, Claer Barrett, Consumer Editor at the Financial Times, said: “When you get to state pension age, you’ll only get the full [new] state pension if you’ve got 35 years of contributions.

“But you can go online – there’s a really good free Government website – GOV.UK – where you can see if you’ve got any gaps and at the moment you can pay around £800 a year to fill a missing year.” 

The money expert said doing so could save people thousands of pounds during their retirement years.

Claer explained: “If you do that it means you’ll get more state pension every year of your life when you retire so that £800 investment could bring you thousands in years to come. But the rules change in April and you can only fill in gaps going back six years from then, so really important to look now.

“It’s a bit of money but could be wise – also while you’re there, there’s another Government page to look for lost company pensions.

“Every single job that you have, your employer will be paying into a pension for you if you earn more than £10,000 but people forget that they have them and move house.”

Premium Bonds winner in ‘disbelief’ after £1million prize win [NSIGHT]
Households may be able to claim refund on their TV Licence [UPDATE]

Benefit payments for pensioners to increase in 2023 [ALERT]

She continued: “Billions of pounds are sitting there in pensions and it doesn’t just happen to old people it happens to young people and anyone who’s got a job.

“You need to find those and get the money back in your control working for you.”

Ms Barrett is not the only financial expert to recently urge people to get on top of their pensions. Money Saving Expert founder Martin Lewis has also highlighted this issue.

Last month, he reminded Britons aged 45 to 70 to check their NI contributions before April 2023 as they may be able to boost their state pension by thousands. 

The expert issued the reminder after a woman named Martine called into BBC Radio 5Live after she found she had eight years worth of NI contributions missing.

On his previous podcast, Martin said it might be possible to turn an £800 payment into a £5,500 top-up on a person’s state pension.

Martine from Somerset said it was all down to listening to his podcast: “It’s good news. After listening to Martin Lewis’ podcast this week I checked my NI contributions, and found out I had eight years missing.

“I’ve now paid the last six years and will pay the next two years when possible – this has made a difference of about £49 a week which is considerable.”

People need to earn more than £123 a week to qualify for NI contributions and typically must accumulate 35 years’ worth to qualify for the full new state pension.

Martin said everyone aged 45 to 70 should check their NI records as it could prove costly if they don’t act soon.

He said: “It is an incredibly important listen for anybody aged 45 to 70 because the window on being able to buy back a lot of those contributions shuts in April at the start of the new tax year.

“It is essentially an exemption of when they changed the pension system in 2016 and so I would urge anyone who is aged 45 to 70 to make sure you’ve heard that podcast and got that information about whether you should be buying back old state pension years.”

Source: Read Full Article