To obtain a full state pension upon retiring, individuals need to have built up a required 35 years of NI contributions. Those missing the full 35 years of contributions face receiving a reduced State Pension when retiring.
For those who have not got this number of years in full, it is possible to purchase NI voluntary pension contributions to bring them up the full quota of 35 years needed to obtain a full State Pension.
There are only a few months left to top up your State Pension before rule changes in July mean this will no longer be possible.
If you have gaps in your National Insurance (NI) record, you may be able to plug them by paying voluntary NI contributions. The transitional arrangements end on 31 July 2023.
It costs £15.85 to buy one week’s worth of Class 3 NI, or £824.20 per year. Increasing your entitlement to the new State Pension by one year can result in an income boost of £5.29 per week or £275.08 per year.
If you have had gaps in employment due to caring for children or elderly relatives, you may be entitled to NI credits, which give you the same entitlement to the State Pension as voluntary NI contributions at no cost.
It is also important to note that your State Pension will count towards your income tax bill, and increasing the value of your State Pension may push you into a higher income tax bracket, which will affect the benefit of buying extra State Pension years. Therefore, it is recommended that you think through the financial implications carefully and seek the advice of a regulated financial adviser if necessary.
If you need help with pension matters. Get in touch today.
Our BLOG
How to budget for life after work – Our retirement advice
TESTIMONIALS
The staff at CST are always very friendly and approachable.… Read more “Mr JD Dolling, SW Heating Equipment Ltd”
We have been with CST for more than seven years… Read more “Doris Francis, Engineering Services (Bridgend) Ltd”
Our business has been handled by CST for many, many… Read more “Mr & Mrs Rise”
I moved my business to Clay Shaw Thomas because I… Read more “Sandra Wilkinson of Sage Marketing”
The audit was well planned and executed efficiently, with minimum… Read more “GE Carpentry”
Privately and within the company Clay Shaw Thomas provides a… Read more “Seashore Enterprises”
I am very happy with the service from CST. An… Read more “Mr Atkinson “
The family connection with CST goes back many years and… Read more “Dr Jones”
CST are very efficient, courteous and proactive when dealing with… Read more “Mr CMG Adams”
I have been a client for over twenty years and… Read more “Mr J T Wall”
Always one step ahead of the game, CST have helped… Read more “Mr RT Evans”
CST Staff always give unbiased advice in a clear and… Read more “Mr L Branfield”
It has been a professional pleasure working with CST, they… Read more “Mr P Jenkins”
SUBSCRIBE to our list
If you would like to see full details of our data practices please visit our Privacy Policy and if you have any questions please email info@cstwealth.co.uk.