There is one simple but profoundly impactful step in personal finance that many people ignore. Called by Martin Lewis "the most lucrative thing" for over-40s and under-73s, this financial strategy is the key to maximising your income in retirement.
Financial Trends Recommended by Martin Lewis
From 5 April 2025, people will only be able to rectify gaps in their employment record for the previous six years, underlining the urgency of taking action, whatever your age.
Filling the gaps in your National Insurance record transcends age barriers. Even people over State Pension age can significantly improve their monthly payments by filling in any gaps that remain.
Additionally, people in receipt of certain benefits can claim National Insurance credits, protecting their record during periods of illness or unemployment. To rectify any gaps, simply use the HMRC application or contact 0300 200 3500 for help.
For many, investing money can be daunting, often limited to depositing funds in a savings account. However, the opportunity highlighted by Martin Lewis highlights the potential for substantial returns, particularly for those aged over 40 and under 73.
Securing sufficient funds for a comfortable retirement remains a perpetual challenge. Failure to rectify gaps in your National Insurance record can result in a reduced state pension at retirement, which can cost thousands in lost income.
Fortunately, rectifying these gaps has become more accessible, with an initial payment of £800 being multiplied by £5,400 upon retirement.
Most individuals Fail to Realise that they Have Gaps in their National Insurance Record
Many people are unaware of the gaps in their National Insurance record, which builds up through ongoing National Insurance contributions to earnings above the tax threshold of £12,570. Periods of reduced pay or unemployment can lead to these gaps and ultimately reduce retirement income.
Martin Lewis stresses the urgency of the situation, saying: "There is a potentially unbeatable opportunity that everyone aged between 40 and 73 should consider."
"You have until 5 April 2025 to buy back the missing years of National Insurance between 2006 and 2016. This can be very lucrative, as some people are on course to get more than £50,000 increase in their state pension."