State Pension top ups: pensions can be increased by up to £25 a week
3 Apr 2014 10:47 AM
Pensioners and those who reach pension age in
the next 2 years will be able to get up to £25 of additional State
Pension a week.
Pensioners and those who reach pension age in the next 2
years will be able to acquire up to £25 of additional State Pension a
week under plans set out yesterday (2 April 2014) by the Pensions
Minister.
The
State Pension top up will be available from October 2015 to all those reaching
State Pension age before 6 April 2016.
The
scheme will allow people the opportunity to get inflation-proofed additional
State Pension by making Class 3A Voluntary National Insurance
contributions.
The
cost of a State Pension top up is based on a person’s age and takes
average life expectancy into account. For a 65-year-old an extra £1 of
pension a week will be £890, whereas for a 75-year-old the contribution
rate for the same amount of pension is £674.
A
calculator is available online which illustrates the contribution rates based
on age and how much people wish to increase their additional pension by atwww.gov.uk/state-pension-topup
Minister for Pensions Steve Webb said:
The
State Pension top up will provide an opportunity for people to boost their
retirement income by up to £25 a week. This is another bold action in how
we build a stronger economy through choice in retirement
income.
The
scheme will give them a guaranteed, index-linked return and will be
particularly attractive for women pensioners who will draw the higher pension
for longer. It will also help the self-employed, who currently qualify for only
the basic State Pension.
The
top ups can be inherited, with a surviving spouse or civil partner entitled to
at least 50% of the additional State Pension
This measure along with the newly announced Pensioner
Bond that will be available from National Savings and Investments in 2015,
demonstrates the government’s commitment to a fairer society by improving
outcomes for those in retirement and providing increased flexibility for people
to make the most of their savings.
People will be able to pre-register their interest
online or by calling our dedicated phone line. This is available at www.gov.uk/state-pension-topup or by calling 0845 600 4270 or
0345 600 4270.
The
offer will be open for 18 months.
Written ministerial statement
Read the written ministerial statement about State Pension top ups
(PDF)
Contact Press Office
Media enquiries for this press release – 0203 267
5120
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