LONDON: Over seven million existing pensioner Britons have got the chance to top up their state pensions.
Men over the age of 65 and women over the age of 63 can get up to £25 a week extra on their state pension, in return for a one-off payment, depending on their age, the older they get the lower the cost of payment would be.
The people who will reach state pension age before April 2016 can also claim this offer. After that date, the new, more generous, single-tier pension will kick in.
The current basic state pension is worth up to £115 .95. The new flat-rate pension will be worth up to £155 a week to those that qualify.
The new top-up scheme, known as Class 3A contributions, will provide an income that will rise with inflation.
Spouses or civil partners will be able to inherit at least half of that income when the pensioner dies.
About seven million people are currently of pensionable age, according to the Pensions Policy Institute (PPI), and are therefore eligible to take part.
But the Department for Work and Pensions (DWP) concedes that it will not be suitable for everyone, and expects around 265,000 to take up the offer.
“It won’t be right for everybody and it’s important to seek guidance or advice to check if it’s the right option for you,” said Pensions Minister Baroness Altmann.
“But it could be particularly attractive for those who haven’t had the chance to build significant amounts of state pension, particularly many women and people who have been self-employed.”
