State Pensions – Part 2

State Pensions – Part 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.

Registered in England and Wales. Registered Number 5553273.
Registered Address: 8f Millars Brook, Molly Millars Lane, Wokingham, Berkshire, RG41 2AD.

A pension is a long-term investment that typically cannot be accessed until age 55 (57 from April 2028). The level of pension benefits offered could change depending on the value of your investments (and any income they may generate).

The interest rates in effect at the time you begin receiving benefits may also have an impact on your pension income. The tax consequences of pension withdrawals will depend on your unique situation. In later Finance Acts, tax rates, tax bases, and tax relief may change.

The opinions expressed by Ray Best are meant to inform and educate. Before making any investment decisions always take advice that is pertinent to your investment personality and financial situation.

You are aware that past performance will not necessarily be repeated in the future, but you should be aware that persistent poor performance invariably will.

The value of an investment and the income from it could go down as well as up.

The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

UnaVida Wealth Management Ltd. is directly authorised and regulated by the Financial Conduct Authority (440577).

The guidance in this website is primarily aimed at a UK audience and is subject to regulation by the Financial Conduct Authority (FCA).

The Financial Conduct Authority does not regulate tax planning, estate planning, or wills and any form of legal documentation.