Pensioners who were born before 6 April 1951 (6 April 1953 for women) now have a limited period in which to boost their entitlement to their current state pension. They will be able to buy extra entitlements to their state pension of up to £1300 a year, for life. This will be achieved by making a lump sum payment in the form of voluntary class 3A NIC, between 12 October 2015 and 5 April 2017.
The exact amount that needs to be paid to receive each extra £1 per week of pension depends on the individual’s age at the time they make the payment. There is a table on page 5 of the state pension top-up factsheet, and an online calculator on Gov.uk to help with this calculation.
CLICK HERE for State Pension Top-up Factsheet.
CLICK HERE for State pension top-up calculator for class 3A contributions.
The ability to top-up the state pension may be particularly useful for women who have taken breaks from employment during their working lives, and for the self-employed with similarly patchy NIC records. Married couples will need to decide which person should make the top-up payment, as an income will be paid to a surviving spouse (or civil partner) of at least 50% of the topped-up amount.
Note the paragraph about customers (they mean pensioners) living overseas on page 3 of the factsheet.
The first condition for the top-up is that the pensioner must already be in receipts of a UK state retirement pension.
Highlight the contact details to register an interest:
Email: paid.caxtonhouse@dwp.gsi.gov.uk
Telephone: 0345 6004270
It will be important to register an interest as there will be no doubt an online system to make the payment that may require a person to prove identity. That make be more tricky for someone who lives outside of the UK.
[Example - A male at the age of 83 could pay £11,350. IF he lives 15 years he would receive back a total of £19,500 plus inflation increases on top. If his wife lives on, she would continue to receive at least 50% of the sum. The lump sum payable goes down as one ages and is also related to one's sex.]
Brian Cave
le Fourquet, Gourdon, 46300, France
W: http://pensionersdebout.blogspot.com/ -Votes for Britons -http://votes-for-expat-brits.com
Comments
At 72, one would need to pay in GBP17,000+ to receive the extra 25 p.w., so ...
situation 'normal' then.