View more on these topics

Big buyback opportunity for women

Pre-Budget report changes mean women with an incomplete National Insurance record could get a return on investment of up to 7,200 per cent if they buy back extra years.

Standard Life says women should move fast to take advantage of the deal before the buyback price rises in April 2009.

Women with fewer than 10 qualifying years of National Insurance payments are not entitled to the basic state pension but as soon as they reach 10 years they are entitled to 26 per cent of the full basic state pension.

If a woman has nine qualifying years, the cost of buying class 3 NI contributions to get an extra year and qualify for 26 per cent of the full pension is only £421.20. If they were to buy an index-linked pension on the open market to draw the same amount per week, it would cost £30,656.

Standard Life says even if a woman already has 10 qualifying years, it could still be worthwhile to buy extra years.

Head of pensions policy John Lawson says: “Women looking to take advantage of this deal should act fast. The Government has cottoned on to the fact that class 3 contributions are a giveaway and plan to raise prices.”

Recommended

Challenge to manage the state lenders

Although mention was made of the future benefit of the Crosby report, there was no up-front stimulus for the housing market or the provision of mortgages in the pre-Budget report.

Recession to be short and shallow

HSBC chief economist Dennis Turner has forecast the recession will be shallower and shorter than predicted, with a recovery starting in the second half of next year.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com