View more on these topics

Cost of buying back NI contributions jumps 45%

The Government is poised to increase the cost of buying back missing National Insurance contributions by 45 per cent next year.

The Department for Work and Pensions announced last month that people who had taken time off work, primarily women, could buy back six extra years of National Insurance contributions, on top of the six already allowed. This would bring them closer to receiving the full basic state pension – currently £90.70 a week.

But, buried in the small print of Monday’s pre-Budget report, the Government has revealed that the cost of buying back a lost year of national insurance will rise in 2009 from £420 to £626.

National Pensioners Convention vice president Dot Gibson says: “Up to five million existing women pensioners already fail to get a full state pension because they spent years raising children, caring for relatives or working part-time. Many of these women are now living in poverty and would have found it hard enough to buy back under the old rules, let alone now the cost has risen by almost 45 per cent. The government has conned millions of older women by telling them they can buy back their lost pension, but failing to tell them exactly how much it is going to cost. Before this increase, only 1 in 10 were expected to take up the offer, but now it looks like the whole thing is unraveling. Women have a right to feel cheated.”


Lacking in substance

With regards to Michael Nichols’ plea for a balanced debate regarding structured products, from what I have seen in Money Marketing, I have had two articles casting doubt on the product but there have been nine letters and articles, etc in their defence. None has anything of substance which would change my mind. There have been no facts to demonstrate transparency or anything to prove me wrong. Do I have seven more chances to make the debate balanced?


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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