Between 12 October 2015 and 5 April 2017, those who will have reached their State Pension Age on or before 5 April 2016, will be able to secure Additional State Pension of up to £25 gross per week in exchange for a one-off payment.
This will apply to:
The amount of the one-off payment will depend upon the following:
An online calculator is available here https://www.gov.uk/state-pension-topup, which will calculate the one-off payment needed from you. To give an indication to provide £1 per week the cost ranges from £956 for woman aged 62 years to £127 for an individual who is 100 years old, with these payments made by way of voluntary Class 3A National Insurance contributions.
The main features of the State Pension Top Up are:
Please note, however, that as with other income the Additional State Pension will be taxable and can have an impact on any current and future income related benefits, including Pension Credit and any Housing Benefit. Also if you have a shortfall in your basic State Pension, you should first consider making Class 3 Voluntary National Insurance contributions as these could be more beneficial than the State Pension Top Up.
If you have any queries regarding the State Pension Top Up scheme please contact your usual consultant.
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