What does Martin Lewis say about state pension?
Asked by: Kris O'Keefe | Last update: March 5, 2026Score: 4.9/5 (27 votes)
Martin Lewis emphasizes checking and boosting your State Pension by filling National Insurance gaps, calling it "life-changing" money, especially for those under 73, warning that the 4.8% rise in April 2026 brings many closer to paying tax on it from 2027, and stresses the importance of understanding pension tax rules, especially for those working part-time.
What did Martin Lewis say about the State Pension?
Martin Lewis has issued a key state pension update during his Budget special on Thursday, 27 November. The state pension will rise by 4.8% in April 2026, meaning that the new state pension will increase to £12,547.60 a year — just below the frozen personal allowance tax threshold at £12,570.
Is the State Pension going to be reduced?
From 6 April 2025, the State Pension will increase by 4.1%. This is the amount of inflation measured by CPI for September 2024.
What is the 6% rule for pensions?
The pension 6% rule is a guideline to help you choose between a lump-sum payout or monthly pension payments, suggesting that if the annual pension amount is 6% or more of the lump sum, take the monthly payments, but if it's less than 6%, the lump sum might offer better financial growth potential when invested. To calculate: (Monthly Pension x 12) / Lump Sum = Percentage; a higher percentage favors monthly payments, a lower one favors the lump sum, but personal factors like health, inflation, and risk tolerance also matter.
What are the changes in the pension in September 2025?
From 20 September 2025, several changes will take effect for people who receive the Age Pension. These include increases to the maximum payment amounts, adjustments to income and asset thresholds, and a rise in deeming rates. This marks the end of the frozen period on deeming rates.
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Are state pensions going up in 2025?
The amount you'll get from the State Pension went up in April 2025. This is because the government has kept the triple lock – which came back into effect in 2023 after having been suspended.
How much money can you have in the bank and still get a full pension?
From 20 September 2025, the full pension is available, under the assets test, for homeowner singles whose assessable assets are under $321,500 – for homeowner couples the number is $481,500. The numbers for non-homeowners are $579,500 and $739,500 respectively.
Should I take a $44,000 lump sum or keep a $423 monthly pension?
Choosing between a $44k lump sum and a $423/month pension depends on your health, financial goals, risk tolerance, and other income; the lump sum offers control and growth potential but risk of outliving it, while the monthly payment guarantees lifelong income, protecting against market risk and outliving savings, but with less flexibility and potential for inflation erosion. Calculate if $423 monthly meets essential needs; if so, the lump sum offers freedom; if not, the annuity provides crucial security, especially considering factors like your life expectancy, other savings, and professional advice.
How many Americans have $1,000,000 in retirement savings?
Only a small fraction of Americans retire with $1 million or more, with figures often cited around 3-4% of all retirees, though some sources suggest a slightly higher number for those nearing retirement (around 9-10% for ages 55-64). Data from the Federal Reserve's Survey of Consumer Finances shows that while many aspire to this goal, the reality is that most fall short, with average savings for older households being significantly lower than $1 million.
How much of my pension can I take tax free?
Take cash lump sums
You can take your whole pension pot as cash straight away if you want to, no matter what size it is. You can also take smaller sums as cash whenever you need to. 25% of your total pension pot will be tax-free. You'll pay tax on the rest as if it were income.
How much will State Pension rise in 2026?
The basic and new State Pension will be uprated by 4.8% from April 2026.
Is retirement age changing in 2025?
In 2025, the Social Security Full Retirement Age (FRA) continues its gradual increase, reaching 66 years and 10 months for those born in 1959, marking the final step before it hits age 67 for those born in 1960 and later, a milestone finalized in 2026. This change means people turning 66 in 2025 have to wait longer for 100% benefits, with the full age hitting 67 for anyone born in 1960 or after, completing the multi-decade rise from 65 to 67.
What is a good retirement income?
A good retirement income is often cited as 70-80% of your pre-retirement income, but it truly depends on your lifestyle, location, and health care needs; a common goal is to cover essentials (housing, food, healthcare) plus discretionary spending, with many relying on Social Security, pensions, and savings to fill the gap. Financial experts suggest calculating your specific needs by tracking current expenses and projecting future costs, factoring in inflation and potential healthcare expenses.
What is the best pension advice for Martin Lewis?
It can be difficult to decide how much money to put into a pension. Mr Lewis gives his rule of thumb: “Take the age you start a pension and halve it. Then aim to put this per cent of your pre-tax salary into your pension each year until you retire.”
Why don't all pensioners get the new State Pension?
You need 35 qualifying years or more of NI contributions to get a full new State Pension. If you've got between 10 and 35 qualifying years, you'll get part of the full rate. This is 1/35th for each qualifying year you have.
What is the average 401k balance for a 72 year old?
For a 72-year-old, average 401(k) balances vary by source but generally fall in the range of $270,000 to over $420,000, with median figures often much lower, around $90,000-$100,000, because high earners skew the average; for example, one report shows averages for ages 70s around $425k (median $92k), while another groups them with 65+ at around $299k (median $95k).
What is the average super balance for a 62 year old?
At age 62, average super (retirement) balances vary, but generally fall in the range of $250,000 to over $380,000 for men, and $180,000 to over $300,000 for women, with median figures often lower, around $150,000-$200,000 for the 60-64 age bracket, showing a wide spread based on sources like Moneysmart, UniSuper, and ATO data. Remember these are averages, and individual balances depend heavily on income, contributions, and time until retirement.
What is considered wealthy in retirement?
Being considered wealthy in retirement isn't a single number, but generally starts around $3 million to $4 million in net worth, placing you in the top 5-10% of retirees, with true high-net-worth individuals often having $5 million or more, focusing on financial freedom, diverse income streams (investments, property, pensions), and a lifestyle beyond basic needs.
How many Americans have $500,000 in retirement savings?
Roughly 7% to 9% of American households have $500,000 or more in retirement savings, though figures vary slightly by data source, with some reports showing about 9% and others around 7.2%, highlighting that less than one in ten households reaches this significant milestone, while nearly half have no savings at all.
What is the most tax efficient way to take your pension?
The most tax-efficient way to draw a pension involves a blended strategy, often starting with tax-free cash (up to 25% in the UK) then strategically withdrawing from taxable accounts (like 401(k)s) before Roth accounts, using proportional withdrawals across account types for stable tax bills, or taking smaller, flexible "drawdowns" to manage income and tax brackets over time. Key methods include taking the tax-free lump sum (PCLS), phased withdrawals, or using Uncrystallised Funds Pension Lump Sum (UFPLS) (UK) or rollovers (US) to defer tax.
How much does the average retired person live on per month?
The average retiree's monthly expenses in the U.S. hover around $4,600 to $5,400, with younger retirees (65-74) spending more, often over $5,000 monthly, while those 75+ spend closer to $4,400 as transportation and entertainment costs decrease, though healthcare costs can rise, with housing, transportation, healthcare, and food being the biggest categories.
How much can you have in the bank if you're on State Pension?
People of pension age can have up to £10,000 savings in the bank before it affects their pension credit. So if you have savings over £10,000, it will start to count towards your income calculation. Every £500 over £10,000 will be calculated as £1 additional income per week.
What is a good pension amount?
For people aged 60, Fidelity's retirement savings guidelines recommend an amount in savings worth six times your salary in order that you have enough to maintain your standard of living in retirement. So, someone earning £60,000 would need £360,000 in savings - which can mean money both inside and outside of pensions.
How much can you gift on a pension?
Centrelink and DVA allow pensioners to gift $10,000 per financial year and $30,000 over a rolling five-year period without affecting pension entitlements. A gift can be cash, or something else given without an equal payment in return, such as furniture, a car, boat, caravan, shares, managed funds, or real estate.