Money saving guru, Martin Lewis has divulged valuable financial advice for state pension claimants as an important deadline approaches.
The finance expert appeared on yesterday’s This Morning and gave a viewer valuable advice about a July 31 deadline that applies to state pension claimants. The advice came after a viewer rang in to explain they were 10 years short of receiving the full state pension asked if they should cash in a private policy to top it up.
The Liverpool Echo reports that the Money Saving Expert split the question into two parts and revealed people in a similar position need to act before a deadline on July 31. State pension claimants must fill out gaps in their National Insurance contributions (NIC) before this date or face losing thousands of pounds.
People aged between the age of 45 and 70, who will receive the new state pension, can backdate any gaps to 2006. However, after July 31, claimants will only be able to fill in NIC gaps from the past six years.
Martin urged anyone who this applies to, to buy back those pension years before the deadline. He said: “On average life expectancy this is probably the most lucrative thing you’ll ever do. I’ve done a programme on it. I’ve got a big ITV special coming in June on it where I’m going to go through it step by step because it’s complicated.”
Martin explained it was difficult to advise the viewer on whether they should cash in the existing pension as he didn’t have their exact numbers. However, he urged the viewer to contact government backed service, MoneyHelper, to get free bespoke advice.
He said: “There’s very little out there on average life expectancy that comes close to being as good as the state pension so I’m hedging towards a yes but I don’t know any of your details and haven’t done a fact find. One big advantage when we come to pension questions is you can get free one on one guidance about pensions so somebody can actually spend time going through your specific bespoke case with you one on one without you paying.
“For that you go to MoneyHelper, which is a government backed free agency. I’m not gonna give you an answer, I’m gonna say it’s likely it is worth it but please call MoneyHelper and get someone to go through with it on a bespoke basis one on one to see if it’s likely to be worthwhile for you to cash that in.
“To give you an example, I’ve had people get in touch with me who have spent something like £4,000 and their effective return by the time they finish getting their pension by the time they pass away is likely to be £50,000 – £60,000. That’s inflation proof so it’s incredibly worthwhile.”
Pension Wise is a free service from MoneyHelper providing impartial government guidance about your defined contribution pension options. You can book your appointment online here – or, book your appointment by phone on 0800 138 3944
Read The Full Story Here: Source