Pension top-ups ‘window’ opening soon

The government has issued a reminder that for a limited period starting in October, certain people will be able to make extra national insurance contributions to top up their state pension.

Between 12 October 2015 and 5 April 2017, men born before 6 April 1951 and women born before 6 April 1953 will be able to make Class 3A voluntary contributions to boost their pension by between £1 and £25 a week.

The government has created a calculator so that someone can work out how much they will need to contribute as a lump sum, based on how much extra pension they would like to receive and their age when they make the contributions.

For example, the contribution required for an extra £1 pension per week for a person aged 65 is £890.

This means that for £4,450, they could receive an additional £5 a week, or £260 per year for life, increased in line with prices and inheritable on death in the same way as existing additional state pension, with a minimum of 50 per cent for their spouse or civil partner.

Milsted Langdon’s Independent Financial Advisers can provide expert advice on all aspects of pensions and retirement planning, to help you clarify your options and make informed decisions to maximise retirement income. For more information, please contact us.

Link: State pension top-up calculator

Posted in News.