Pensioners will be able to boost their retirement income by making voluntary national insurance contributions under plans put forward by the Government today.
Delivering his Autumn Statement today, chancellor George Osborne said those who have not made the full NI contributions will be able to make up the difference in retirement.
Currently people can make extra contributions before they retire but not when they are receiving their state pension.
He said: “We are going to offer current pensioners an opportunity to make voluntary NI contributions to boost their income in retirement.
“We will also extend this opportunity to those who reach pension age before the introduction of the single tier pension to help those who haven’t built up much entitlement to the additional state pension especially women and the self-employed.”
Osborne said the triple lock has made pensioners £800 a year better off and the state pension will rise by £2.95 a week from next April.
The Treasury said state pension age will increase to 68 in the mid-2030s and 69 in the mid-2040s.
Osborne said a fair principle is people should expect to spend up to a third of their adult life in retirement.
He also confirmed the state pension will not be included in the cap on overall welfare spending, which will come into force next year after a parliamentary vote.
More details to follow when the relevant documents are published.