The Money Saving Expert founder discussed retirement spending strategies on his BBC podcast, as state pension changes take effect from April 2026 advising people on what to do
The expert advised people how best to spend their pension(Image: ITV)
Martin Lewis has highlighted a vital principle concerning spending habits during retirement on his BBC podcast.
The money expert shared various tips from loyal listeners on a recent episodes, where listeners highlighted the importance of starting pension contributions early in one’s working life and being careful when taking financial decisions.
One listener called Chris, aged 62, who has chosen early retirement, shared his perspective on spending patterns, where he urged people not to feel guilty about enjoying the money they’ve grafted hard to build up throughout their careers.
He said: “My policy is to enjoy now the money I’ve saved as in another 15 or 20 years, I might not be able to, or wish to enjoy the things or visit the places I want to now.”
READ MORE: Martin Lewis issues warning to anyone with a joint bank account
Responding to this viewpoint, Mr Lewis backed this approach for handling retirement finances. He said: “I absolutely agree funnily enough. Money is about utility and happiness.”, reports the Liverpool Echo, reports Yorkshire Live.
“You need to plan and be prepared for the worst to happen, and have the contingencies available. But actually spending wisely, checking that you are doing things efficiently, not wasting money on things that don’t give you happiness or value, or at least getting the things that you need and the necessities, not joyful things, as cheaply as possible in a way that works, is what enables you to spend the money on the things that you want to, to give you a better life.”
People in their early 60s who are preparing for retirement may want to check when they’ll be eligible to receive their state pension. While the state pension age currently stands at 66, it’s set to rise from April 2026, gradually increasing to 67 by April 2028.
Generally, 35 years of National Insurance contributions (NI) are required to secure the full new state pension. The current full rate stands at £230.25 per week, rising to £241.30 weekly from April this year, thanks to the triple lock policy.
State pension payments are set to increase by 4.8 per cent in accordance with this policy. Anyone wanting to check how much state pension they’re expected to receive can do so through a tool available on the Government website.
A minimum of 10 years of NI contributions is required to qualify for any state pension. If there are any gaps in your NI record, you can voluntarily buy contributions via the Government website.
Contributions can be purchased for up to six previous tax years. However, this doesn’t guarantee an increase to your state pension entitlement, so it’s crucial to check this before making the payment.
Those nearing state pension age may also want to explore what additional benefits they’re entitled to claim. Pension Credit is available if you’re on a low income, with the average claim worth £4,300 annually in extra support.
This benefit provides a weekly income boost and paves the way for further Government assistance. You’re also eligible to apply for Attendance Allowance if you have a disability or health condition that requires aid from another individual. Other benefits that might be available to you include the Winter Fuel Payment and Cold Weather Payments.