A State pension offer that closes on 5th April 2017 is ‘not to be missed’ as it offers 12 million people the chance to buy up to £1,300 a year extra state pension, according to Stockport-based financial advisors, Cullen Wealth.
The scheme is open to men born before April 6, 1951, and women before April 6, 1953, who live in the UK and already receive a state pension or are entitled to one.
It will be possible to buy between £1 and £25 extra a week by paying Class 3A voluntary national insurance contributions.
The biggest beneficiaries are likely to be women who tend to live longer and so will get a better return on their contributions.
For those who are healthy and expect to enjoy an average lifespan or even longer it is a good deal because the pension income rises in line with inflation.
A 65-year-old would need to pay £8,900 for an extra £10 pension a week for life, however much like an annuity, once it has been paid, the capital won’t be returned. If you were to buy an annuity on a similar basis to the governments offer for £8,900 you are only likely to receive £5 pension a week for life.
The extra state pension does comes with another benefit too, 50% of the additional income purchased will continue to be paid to a spouse upon the purchaser’s death.
Don’t delay, the offer closes on April 5, 2017, visit www.gov.uk/statetopup for more details in how to apply, or call one of our consultants for help.