Money-saving expert Martin Lewis<\/strong> has reassured pension savers that state pension means testing remains an unlikely risk, but warned that the state pension age could rise in the future. Speaking on The Martin Lewis Money Show Live<\/em> on March 4, he emphasized that those considering buying back missing National Insurance years should do so before the April 5 deadline, as the opportunity to boost future payments could soon disappear.<\/p>\n\n\n\n
Currently, individuals can buy back up to 13 missing years of National Insurance contributions, allowing them to increase their state pension<\/a> entitlement. This costs approximately \u00a3824 per missing year, but depending on life expectancy, it could result in thousands of pounds in extra pension payments over time.<\/p>\n\n\n\n
During the show, Lewis was asked whether buying extra years could backfire if the state pension later becomes means-tested, meaning only those on low incomes would qualify. While some politicians, including Kemi Badenoch, have discussed the idea, no major UK party has proposed it as official policy.<\/p>\n\n\n\n
Lewis reassured viewers that means testing <\/strong>is an outside risk at best, adding that any such move would likely face legal challenges. He argued that those close to retirement have little to worry about, as it only takes around two and a half years of pension payments for the investment in National Insurance contributions to break even.<\/p>\n\n\n\n
According to Lewis, a far more likely scenario is an increase in the state pension age, meaning future retirees may have to wait longer to access their payments. However, even if the pension age rises, he believes buying back missing years still makes financial sense, as the overall lifetime gain remains significant.<\/p>\n\n\n\n
For those nearing state pension age<\/strong>, Lewis strongly advises taking action now, stating:<\/p>\n\n\n\n
“If you’re going to retire in two or three years, it’s a no-brainer. The potential rewards from this are very large, the risk of means testing happening is small.”<\/em><\/p>\n\n\n\n
Meanwhile, younger workers further from retirement may need to consider the long-term risks, as future pension policies remain unpredictable.<\/p>\n","protected":false},"excerpt":{"rendered":"
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