Martin Lewis warns 'deadline' could cost people aged 45 and over £5,400

The BBC Sounds podcast host has spoken out in his weekly Money Saving Expert newsletter over buying National Insurance (NI) years to boost state pension pots.

Martin Lewis has issued a warning as a HMRC deadline to boost state pensions approaches. The BBC Sounds podcast host has spoken out in his weekly Money Saving Expert newsletter over buying National Insurance (NI) years to boost state pension pots.

For every £825 or less you pay to buy NI years, many stand to gain over £5,400, the ITV regular said. He explained: "Each extra National Insurance year typically adds £329 annually to your State Pension. So even for a full year, it'd pay you back after two and a half years of State Pension - after that, it's profit.

"A 66-year-old man living for the typical life expectancy would get a total of £5,400 back, a woman £6,100." The Money Saving Expert said that only a full year's contribution counts, so if you have a partially paid year, it can actually be "very cheap" to buy the rest - potentially as little as £20.

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Before paying any National Insurance, Martin said you should check whether you could plug the gaps for free - which could potentially save you "thousands." There are many instances where you are eligible for National Insurance Credits, and usually, they are added automatically, however, in some instances, you will need to claim them.

For example, you may be entitled to National Insurance credits if you were claiming statutory sick pay and not earning enough for a qualifying year. Those who claim benefits such as Jobseeker's Allowance and Employment and Support Allowance may also qualify for National Insurance credits.

You can contact the free Future Pension Centre on 0800 731 0175 before buying any National Insurance contributions to check if you'd benefit from plugging any gaps in your National Insurance record. If you're already at state pension age, contact the free Pension Service helpline on 0800 731 0469.