BOOST YOUR STATE PENSION
Ladies (mainly but also gentlemen) you have just a few weeks left to boost your state pension if you get – or will get – less than the full basic state pension.
A special offer which allows people to buy National Insurance contributions which were missed as far back as 1975 ends on 5 April.
The people who can buy the contributions are women born 6 April 1948 to 5 October 1952 and men born 6 April 1943 to 5 April 1950. All of them can pay up to six years of contributions right back to 2005/06, as long as they have paid or been credited with at least 20 years contributions in their life. Home Responsibilities Protection for bringing up their own children counts towards that 20 years. In addition they can pay up to another six years back to 2004/05 under the normal rules for paying missed contributions.
People in those age bands fall into three groups
1. Those who reached pension age by 5 April 2010 needed to have 39 years of contributions (44 for men) to get a full basic state pension of £97.65. They are especially likely to be able to boost a pension that is less than that by paying missing contributions for years right back to 6 April 1975.
2. Those who reached state pension age between 6 April 2010 and now will need only 30 years of contributions to get a full pension so are less likely to need to pay extra. But if they get a basic state pension of less than £97.65 then they may be helped by the special deal to pay contributions back to 1975.
Both those groups who pay back contributions will get a boost to their pension and the increase will be backdated to the date they reached state pension age. That could mean a lump sum payment as well as a bigger pension for life.
3. People who have not yet reached state pension age also need 30 years of contributions to get a full basic state pension of £97.65. If they are short of that number then they may well benefit from the special rules that end on 5 April.
For all three groups, each year’s contributions costs around £625 (though more recent contributions may be less). But it can boost your pension by several pounds a week, index-linked to the RPI for life. Those who have already retired can also expect a backdated lumpsum.
More information www.direct.gov.uk put ‘top up national insurance’ in the search box. Or you can call 0845 604 2931.
Act well before 6 April or you will miss the special offer to pay back to 1975 and, if you already get your pension, the backdating to your state pension age.
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