The state pension top-up opportunity opened on 12th October for people who want to boost their annual income by increasing their state pension.
The opportunity is available to anyone who already receives a state pension, or anyone who will become eligible to receive the state pension before 6th April 2016 (when the new flat rate pension commences).
Those taxpayers can pay a voluntary lump sum (Class 3A National Insurance) to receive up to £1,300 a year, for life, on top of their current state pension.
The actual amounts payable to receive additional pension depend on the pensioner’s age at the time of payment. Further information and calculators can be found on the HMRC website.
(Please note that the ability to inherit a spouse’s pension will disappear next April with the introduction of the flat rate pension. People who reach state retirement age on or after that date need to ensure they have sufficient complete NI contribution years in their own name to receive a pension – a minimum of 10 years, and a maximum of 35).