MTTM Podcast Episode 497 – Best ways to boost your pension & Little-known credit card eligibility tip

Listen to Episode 497

On this week's show I explain more than 20 ways to boost your pension pot. I also discuss why time is running out for some people aged between 40 and 73 who could boost their state pension by paying voluntary National Insurance contributions. Finally Andy reveals a little-known tip when checking your eligibility for a credit card offer.

Thank you to our sponsor PensionBee

PensionBee is the UK's leading online pension provider. It can help you transfer most old pensions together into one new online plan, so you'll know exactly how much you've saved and where to find it. If you are looking for a low-cost, hassle-free way to consolidate your pension pot (excluding final salary pensions), then PensionBee is worth considering. When you transfer your pensions, you can pick from a range of purpose-built pension plans, and if you want to contribute more to your pension, you can do that too. You can sign up to PensionBee in minutes using just the names of old employers or pension providers. Capital at risk.

Support the podcast

Remember to like, subscribe and follow us on all our socials. You can also support the Money to the Masses podcast by visiting our dedicated podcast page.

Every time you use a link on the page we may earn a small amount of money for our podcast. We only use affiliate links that give you an identical (or better) deal than going direct. Thank you for being an incredible part of our community. Your support means the world to us.

Watch the video version of the podcast below:

You can also listen to other episodes and subscribe to the show by searching 'Money to the Masses' on Spotify or by using the following links:

Listen on iTunes    Listen on Spotify     via RSS

 

Episode 497 Podcast Summary

Important pension deadline

Summary:

I explain the importance of checking your state pension forecast and taking action before the April 5, 2025 deadline. I provide steps to check the state pension forecast on the government's website. Importantly, I highlight that there is a callback request form on the DWP website that you can use to register to get a callback. This will potentially allow you to pay those voluntary National Insurance contributions and plug gaps going back as far as 2006, even after the April 5, 2025 deadline.

Key Insights:

• Check your state pension forecast to see what you've qualified for and identify any gaps in your National Insurance record
• There's an important deadline on April 5, 2025 where you can still fill gaps going back to 2006. After this deadline, you will only be able to fill gaps going back six years
• You can complete a callback request form which may allow you to pay voluntary National Insurance contributions going back to 2016, even after the deadline has passed

More than 20 ways to boost your pension

Summary:

In the next section, I provide over 20 tips to help you boost your defined contribution pension. I emphasise the importance of making sure you're claiming the full tax relief on your pension contributions, especially if you're a higher or additional rate taxpayer. I discuss taking advantage of auto-enrolment in your workplace pension as well as asking your employer to match contributions based on your full earnings rather than just qualifying earnings. Importantly, I stress the value of seeking professional financial advice, particularly when it comes to drawing on your pension for retirement income.

Key Insights:

• Claim the full tax relief on your pension contributions, including higher/additional rate relief
• Ensure you're auto-enrolled in your workplace pension and get your employer to match your contributions
• Review how your pension is invested, consider consolidating multiple pensions and try and reduce the fees you are paying
• Seek professional financial advice, especially for retirement income planning
• Also, consider exploring options like delaying your state pension and checking for guaranteed annuity rates

Little-known credit card eligibility tip

Summary:

In the final piece, Andy discusses a listener's question about applying for a new balance transfer credit card from a provider they already have an existing credit card with. Andy explains that if the new credit card is a different product and has a different name, the application is likely to be accepted (subject to the usual eligibility checks). It is possible that existing customers might not receive the full credit limit they applied for on the new card. In this case, the credit card provider may allow the applicant to use some of the available credit from their existing card and transfer it over to the new card, effectively boosting the credit limit. Andy advises listeners to speak directly with the credit card provider to confirm if they can facilitate this type of transfer between cards.

Key Insights:

• Existing customers can likely get approved for a new credit card from the same provider, as long as the new credit card is listed as a different product
• Applicants may be able to transfer some of their available credit from an existing card to the new card to take advantage of the interest-free offer
• Speak to the credit card provider to see if they can facilitate this type of credit limit transfer

Episode quiz will show here soon

Episode quiz 

1. When using the "age guide" rule for asset allocation, roughly what percentage of equities should a 40-year-old have in their pension?

a) 40%
b) 60%
c) 80%
d) 100%

2. The Pension Advice Allowance allows you to withdraw how much from your pension tax-free? (up to 3 times, once per tax year)

a) £500
b) £750
c) £1,000
d) £1,500

3. If you reach state pension age after April 6, 2016, how much will your state pension increase for every 9 weeks you defer claiming it?

a) 0.5%
b) 1%
c) 2%
d) 5%

4. According to the research from VouchedFor, how much is the average initial fee charged by financial advisors for pension advice?

a) 1.28% of investable assets
b) 1.53% of investable assets
c) 1.86% of investable assets
d) 2.21% of investable assets

5. What is the main purpose of the Pension Tracing Service?

a) To consolidate your lost pensions
b) To recommend the best pension providers
c) To track down any missing National Insurance contributions
d) To provide you with contact details for your old pension administrators

Answers

1. b) 60%
2. a) 500
3. b) 1%
4. c) 1.86% of investable assets
5. d) To provide you with contact details for your old pension administrators

Resources

Links referred to in the podcast:

• Check your state pension forecast
• DWP callback request form
• How to earn National Insurance credits
• NI top-up deadline extended
• How to fill gaps in your national insurance record
• Moneyhelper pension calculator
• What is auto-enrolment?
• Salary sacrifice explained
• Pension tracing service
• Free pension review with Unbiased
• Compare annuities
• The best pension income in retirement
• Pension carry-forward rules
• Take out a free trial of 80 20 investor