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Boost clients’ state pension – before it’s too late

Pensions-savings-retirement-piggy bank

A Government offer enabling savers to boost their state pension by making a lump-sum payment to secure additional income of up to £25 per week will expire in June.

The offer has been available since 2014, when it was introduced to enable people who lost out as a result of the replacement of the old basic state pension by the new flat rate one to buy additional guaranteed pension income on favourable terms. Continuing low interest rates have made the offer even more attractive.

The question of whether an individual saver should take up the offer depends on a number of factors, including age, health, marital status, tax bracket and inheritance plans.

While the offer is unlikely to be attractive to higher rate taxpayers in questionable health, it should potentially be given consideration by anyone else who might otherwise have intended to buy a retirement annuity.

Aileen Lynch is head of technical at Compliance First

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Trevor Harrington 11th May 2017 at 2:07 pm

    Why would anybody want to contribute even more money, voluntarily, to a scheme that has already stolen 7 years pension off my Wife and 2 years pension off myself.

    They have also stolen both my wife’s and my own SERPS pension qualification.

    I calculate that my wife and I have suffered well in excess of £200,000 in lost income during our remaining lifetime, which was PROMISED to us on the compulsory payment of our NIS contributions.

    Can you imagine a private pension fund stealing that amount of money from two policyholders, and then asking if they might care to voluntarily add some more money into the same scheme …. presumably on the basis that they promise not to steal that money as well …

    I think the answer might be short, pertinent, to the point and well “on message” ….

  2. I’m afraid the ‘state pension top-up’ scheme closed last month – see: https://www.gov.uk/state-pension-top-up. There’s a guide to how people can still top-up their state pension using the regular Class 3 voluntary NICs scheme at http://www.royallondon.com/goodwithyourmoney

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