Receiving your state pension? Or due to do so by 5 April 2016?
Normally, once you start receiving your state pension you are not allowed to make any further contributions to enable your weekly pension to increase.
However, until 5 April 2016 there is a one-off opportunity to increase your pension - which also applies to those reaching state pension age from now until 5 April 2016 – and which is being offered due to the changes in state pension coming in on 6 April 2016.
It will be possible to buy a maximum of a further £25 per week – the cost will depend on your age - and you will only be able to make the top up payments between 15 October 2015 and 1 April 2017.
At the moment it looks like a 65 year old will have to pay £890 for an extra £1 per week state pension – which means you will have to live until at least age 82 to get your money back….
The decision as to whether purchase extra state pension is always a bit of a gamble and it is imperative that you take professional advice before making a decision.
You should contact robinson+co’s Chartered Financial Planner, Jenny Armstrong on 01900 603623 for further information.
However, you should also bear in mind the new rules for taking personal pensions announced in the 2014 Budget and Autumn Statement. (See Jenny’s articles here and here.) It is more important than ever that a holistic view is taken of planning for retirement and inheritance.