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Martin Lewis’ Pension Advice: What You Need to Know

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Martin Lewis' Pension Advice

Martin Lewis, the UK’s leading financial expert and founder of MoneySavingExpert.com, recently shared crucial pension advice on The Martin Lewis Money Show Live on ITV. If you’re looking for ways to maximize your retirement income, avoid common pension pitfalls, or understand how state pensions work, this guide will summarize his key recommendations.

Martin Lewis on Pensions: How to Boost Your Retirement Income

During his ITV pension special, Martin Lewis provided insights into how UK residents can make the most of their pensions. His expert advice covered both state pensions and private pension schemes, helping millions of viewers gain a clearer understanding of their options.

1. Check Your National Insurance Contributions

One of Martin’s main points was ensuring you have enough National Insurance (NI) contributions to qualify for a full state pension. The current requirement is 35 qualifying years of NI contributions. However, many people have gaps in their records, which can result in a lower pension.

What you should do:

  • Visit the HMRC National Insurance record checker to see if you have gaps. You may need to create an account if you do not have one.

  • If you do have gaps, consider making voluntary contributions to fill the missing years before April 2025, as the rules may change.

2. Are You Missing Out on Pension Credit?

Martin Lewis also highlighted Pension Credit, a benefit designed for low-income pensioners. Shockingly, over 800,000 eligible people are not claiming it, missing out on up to £3,500 per year in additional financial support.

How to claim:

3. Understanding Pension Freedoms & Avoiding Scams

If you have a private pension, Martin Lewis warned about the risks of pension scams and withdrawing money too early. Since the introduction of Pension Freedoms, anyone over 55 years old can access their pension pot, but this comes with tax implications and potential risks.

Martin’s advice:

  • Be cautious of companies promising “high returns”—they could be scams.

  • Before making any withdrawals, get free guidance from Pension Wise.

  • Avoid taking more than 25% tax-free in one go unless absolutely necessary.

4. Maximizing Your Workplace Pension

Martin Lewis urged viewers to stay enrolled in their workplace pension scheme, as employers must contribute at least 3% of your salary. This is essentially “free money” that helps boost retirement savings significantly over time.

What to do:

  • If you’ve opted out, consider rejoining to benefit from employer contributions.

  • Check your pension statements to understand what you’re contributing and how much your employer adds.

Final Thoughts: Take Action on Martin Lewis' Pension Advice

Martin Lewis’ pension advice is a wake-up call for anyone looking to secure a comfortable retirement. Whether it’s checking your state pension entitlement, applying for Pension Credit, avoiding scams, or making the most of your private pension, taking action now could make a significant difference in your later years.

For more expert financial guidance, watch the latest episodes of The Martin Lewis Money Show Live on ITVX.