Martin Lewis has issued state pension advice after a listener to his podcast posed a 'really interesting' question. The money expert told a young woman that her plan to fill gaps in her National Insurance record was 'overkill' for her current situation.
Understanding State Pension Eligibility
In the UK, you need at least 10 qualifying years on your National Insurance (NI) record to receive any new State Pension. To get the full amount, approximately 35 years are required. A qualifying year can be secured through work and paying NI contributions, or via alternatives such as receiving NI credits while unemployed, ill, or as a parent or carer. It can also be obtained if you lived or worked overseas, or paid a reduced rate as a married woman.
The Podcast Question
On a recent episode of his BBC podcast, Martin tackled a question from Holly, aged 36. She was considering paying to fill two years of gaps in her NI record to reach 10 qualifying years. Having worked abroad and studied, she asked: 'Is it worth paying the two now or would it be considered a waste of money as I am likely to reach the 35 years needed for a full state pension anyway?'
Martin's Assessment
Martin began: 'That's a really interesting question.' He advised Holly to first check her state pension projection on gov.uk to see if she is predicted to receive the full state pension at retirement. If she is, he said: 'I think this is probably overkill, because it's not like once you get to the full state pension, you earn more NI years, you get even bigger than the full state pension. It doesn't work like that.'
He explained that National Insurance is essentially a tax, and if you are on track for the full state pension, you likely don't need to pay for extra years. However, he noted an exception: if the cost to fill the gaps is very low. 'If you could buy a part year for £15, £20, or even £50, I'd be tempted to do it just as a safety net. But if you have to pay the full £950, it's probably not worth it at your age.'
Martin cautioned that state pension rules could change in 30-35 years, including potential means-testing. He advised Holly to take her time, consult official resources, and only proceed if the cost is minimal.
Official Guidance on NI Gaps
According to gov.uk, gaps can occur if you were employed with low earnings, unemployed without benefits, self-employed with small profits, or living abroad. The government recommends reviewing your NI record and checking eligibility for credits before paying voluntary contributions. If you think your record is wrong, contact HMRC.
