State Pension Top Up

[lardhelmet]

Out of curiosity, I clicked on to the government advert. that is appearing on my page today, to see what it was about. It seems that in order to increase my pension by £10 a week, I have to send them £8,900 when I'm 65.

So, if I need an extra £10 per week, why would I have £8,900 in the bank?

[Svejk]

you'll be quids in when you reach 84. ;)

[lardhelmet]

Maybe so, but at that age, what would I do with the money?

[TonyV]

I had a similar notice a while ago, seems that I am short on some national insurance contributions. If I had " signed on" government would have covered them.

[grumpy01]

See this window is from 12th October 2015 until 1st April 2017.It is for the people who reach 65 before the New Pension comes in in April 2016 of approx £155,which works out just right for me.

[ladybirder]

Wow grumpy, something for you not to be grumpy about. How wonderful for you;-))

[grumpy01]

Thank you Ladybirder I'm glad someone is pleased for me.

[lardhelmet]

Well I don't have almost £9000 sitting around doing nothing, so I assume I won't get £155 a week or whatever it is. I don't know many people who would (apart from the ex).

[Svejk]

My old mate gets £185 a week & his rent paid. Poor pensioners, pfff.

[TonyV]

Lard think you will still get full amount when time comes, just be made up from different benefits if current rules are still in place

[grumpy01]

The £155 is the figure for those reaching 65 or the equivalent Female pension age in April 2016.Those reaching State Pension age have provision at present to make up for lost years with N.I.contributions, from October next year this new scheme will come into operation.

[grumpy01]

Just to add I'm off to bed now as I've got work in the morning.Christmas Shoppers will no doubt be out and about looking for bargains.

[lardhelmet]

Thank you tony and grumpy. Sleep well grumpy.

[Old_Geezer]

Look upon it as a 5.8% investment opportunity, where the government nicks your initial investment when you pop your clogs.

[factor-fiction]

It's not compulsory- it's an option. If you can't or don't want to take the option up that's fine

[Tilly2]

I had a look at that and in order to top-up my pension by £25 per week, I would have to 'invest' over £28,000.

Why would I do that?

[factor-fiction]

I thought the investment needed to get £25pw was nearer £23000, Tilly, but even so it doesn't sound a great deal to me unless you expect to live at least another 25 years

[Tilly2]

I'll have another look, factor. I may have got it wrong. Even so, as you say, you have to live to a very ripe old age to get your money back.

[factor-fiction]

That sort of return is quite good compared with current annuity rates, so some will consider it a good deal.
The gov.uk site is quite good and contains a calculator but it also suggests that financial advice should be taken

[Tilly2]

To get my 23000 back I will be 79.5. I suppose that's not so bad. Thanks for that, factor.