Martin Lewis has given his full approval to a suggestion from one of his fans about how to spend your money in retirement. On his BBC podcast, the expert shared several tips from his loyal listeners. These included ideas such as building up your pension from early in life and being careful with your spending.
One idea came in from listener Chris, aged 62, who is in early retirement. They encouraged people not to feel guilty about spending money on yourself that you have worked hard to earn over your lifetime. 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.”
In reply, Mr Lewis said he supports this attitude to spending. He said: “I absolutely agree, funnily enough. Money is about utility and happiness. 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.”
Those in their early 60s planning for their retirement may want to factor in when they can claim their state pension. The state pension age is currently 66 but this is increasing from April 2026, moving up in stages to 67 by April 2028.
You typically need 35 years of National Insurance contributions (NI) to get the full new state pension. The full rate is currently £230.25 a week, and will increase to £241.30 a week from April this year, in line with the triple lock policy.
State pension payments will go up 4.8 percent in line with the policy. Anyone who wants to check how much state pension they are on track to receive can do using a tool on the Government website.
You need at least 10 years of NI contributions to get any state pension. If you have any gaps in your NI record, you can voluntarily buy contributions through the Government website.
People can buy contributions up to six tax years ago. This does not guarantee your state pension entitlement will increase as a result, so it’s important to check this first.
People approaching state pension age may also want to check what other benefits they can claim. You can get Pension Credit if you are on a low income, with the average claim worth £4,300 a year in extra support. The benefit provides a top up to your weekly income and access to other Government support.
You can also claim Attendance Allowance if you have a disability or health condition where you need someone else to help you. Other benefits that may be available to you include the Winter Fuel Payment and Cold Weather Payments.