The Money Saving Expert founder said gaps in National Insurance records could leave people missing out on state pension income
Millions of people across the UK may be missing out on a £68.90‑a‑week uplift to their retirement income because they have not built up sufficient National Insurance contributions, Martin Lewis has warned.
The Money Saving Expert founder raised the issue on his podcast after responding to a listener whose relative was nearing their 40s without having worked, claimed benefits or accrued National Insurance credits.
Mr Lewis said many people misunderstand how the state pension system works, with a widespread belief that exactly 35 qualifying years are required to receive the full new state pension.
He said the reality is more nuanced, describing the system as having a “hard bottom and a soft top”.
“The bottom is a hard bottom,” he said. “To get any state pension you need 10 years of National Insurance credits.”
Above that, he explained, the number of years needed for the full amount “is more for some people, less for others”.
He added that the commonly quoted figure of 35 qualifying years is better understood as “35 years‑ish”, because the exact requirement depends on an individual’s National Insurance record.
He also noted that people do not stop paying National Insurance once they reach the maximum entitlement if they continue working before state pension age.
Mr Lewis likened National Insurance credits to collecting tokens throughout a working life. “For each year that you work, you get a National Insurance credit — a token that goes into the piggy bank,” he said.
Credits can also be earned outside employment, with parents and carers able to receive them to protect their entitlement.
The full new state pension is currently worth £241.30 a week, or about £12,550 a year.
Mr Lewis said people with gaps in their National Insurance record may be able to boost their entitlement by making voluntary contributions.
Someone with nine qualifying years, for example, could buy one additional year to reach the minimum 10‑year threshold, unlocking around £68.90 a week, roughly £3,582.80 a year, instead of receiving no state pension at all.
He also highlighted Pension Credit as a key source of support for people with little or no state pension income.
“The obvious thing for someone with no or low income is Pension Credit,” he said. “Pension Credit is effectively a top‑up to any or no state pension that you get, to give you a minimum income.”
Pension Credit can also open access to further help, including support with council tax, housing costs and NHS expenses.
Eligible households with someone aged 75 or over may also qualify for a free TV licence.
People can typically make voluntary National Insurance contributions for up to the previous six tax years, although whether doing so is good value depends on individual circumstances.
