State Pension top-up scheme launched

By Michael McGlinchey, CA Today

12 October 2015

People nearing retirement can use a new top-scheme to increase their pension income for a limited time.

A new top-up scheme, which enables people to boost their State Pension income by up to £1,300 a year has been launched today (Monday)  by the UK Government.

Anyone reaching State Pension Age before 6 April, 2016 will be allowed to buy extra guaranteed income, in exchange for making a one-off lump sum payment.

The government said men aged 65 or older and women aged 63 or older can increase their State Pension by up to £25 a week – up to £1,300 per year - giving them guaranteed extra income for life.

The scheme will be open for 18 months and "in most cases", surviving spouses and civil partners will be eligible to inherit at least 50 per cent of the additional pension.

The additional income will be index-linked to protect it from inflation and the government said anyone who thinks they are eligible should seek expert advice or use the UK Government's online resources.

Pensions Minister, Baroness Altmann, said: "Top up is an opportunity for people already retired, or reaching State Pension age before April 2016, to boost their later life income.

"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.

"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."

More information is available on the UK Government website and this includes a pensions top-up calculator.

Source: UK Government


  • Pensions

Previous Page