State Pensions (2) – our previous blog on state pensions discussed how you can increase the returns from your state pension by deferring payment. This post concerns those age groups that may want to consider making a top up payment to their state pension.
If you are eligible for a state pension but will miss out on the new £148 a week flat rate State Pension. Then you need to consider registering your interest in topping up your current pension.
Men age 64 and over and women age 62 and over can boost their pension by around £25 a week.
This group of pensioners are too old to receive the flat rate which starts next year. To proceed with a top up you need both to register for Class 3A Voluntary Contributions and pay anything from £6740 to £8,900.
Clearly if you smoke and drink then you may be better off keeping the money in your pocket. If on the other hand you are healthy and expect to live an average or better lifespan then this is something you should consider as the benefits increase with inflation.
To register call 0345 600 4270.
If you are considering topping up your state pension, why not also consider making a payment into a personal pension, you do not necessarily have to be in employment, or have any earnings to do this but can make a de minimis contribution of £2880 which will be topped up to £3600 by the HMRC – more on this in a future blog.