Business News

Time Running Out on State Pension Top-Up Offer

Around 70,000 people, mainly women, have until 5 April to boost their basic state pension and get backdated payments.

People who have reached, or will reach, state pension age between April 2008 and April 2011 and do not receive a full basic state pension, could increase their pension payments in the future, and receive backdated payments if they buy back national insurance contributions by 5 April 2011.

The offer from the Department of Work and Pensions allows this group to buy back up to six years of voluntary contributions as far back as 1975.

It follows the reduction In April 2010 of the number of qualifying years of national insurance contributions needed to receive the full basic state pension from 39 to 30 years for women.

Pensions Minister Steve Webb said: “We know that many women didn’t benefit from the reduction in the number of qualifying years of national insurance contributions needed to get a full basic state pension and many have gaps to fill.

“Thousands of people could benefit from receiving back payments on top of a pension boost for life that could cover the upfront costs of buying contributions.

“The chance to take advantage of this offer will end on 5 April of this year, so it’s important that people act quickly.”

People will still be able to fill gaps in their national insurance records when the offer expires but the voluntary contributions will not be backdated.

LINK: Pension and retirement planning