Buying State Pension Credits is changing - act fast!
If you are not entitled to a full state pension you may want to consider topping up. The rules are changing so you may need to act fast.
The full state pension is currently £221.20 a week and generally requires 35 years of recorded National Insurance Contributions (NICs) to get it. If you have less you will get a smaller pension but you can plug the gap by paying additional National Insurance Credits.
Currently you can buy additional state pension credits, for missing qualifying years, from 2006 onwards, allowing you to buy up to 19 years worth of additional state pension credits. From 6 April 2025 you will only be able to buy missing qualifying years from 2019 onwards - a total of 6 years.
Currently it costs £824 to buy an extra years state pension worth £328 per year. That's not a bad return provided you live 2-3 years after state pension age. Typically your state pension will increase each year so this makes it even more valuable over time.
Here is a great link to Martin Lewis' website which provides a fantastic step by step guide and provides a handy calculator too.
Should you have any queries or require more information on any of the areas covered or any other financial matter, please do not hesitate to contact me.
Best wishes,
Sam
|