How to raise your state pension entitlement – but there may be a time limit.
STATE PENSION benefits are only accessible to retirees who have paid National Insurance contributions for at least ten years.
To qualify for the maximum state pension, you must have paid into the system for 35 years.
Those who are short on these years, however, still have the possibility to increase their pensions.
Gareth Shaw, a money saving guru, appeared on The Which? Money Podcast and gave listeners advice on how to increase their pension accounts.
“If you can acquire voluntary class three National Insurance payments, you can actually top up your national insurance contributions,” he stated.
“This will assist you in accumulating your state pension entitlement.
“You can’t keep doing it forever… However, you can fill in gaps in your National Insurance record dating back up to six years.
“Depending on your age, you may be able to fill in more than that; we have a lot of information on this on our website.
“The cost is around £15.13 per week, so if you miss a whole year, you may buy a week’s worth of national insurance contributions, 52 weeks’ worth, and so on.”
It is critical to check one’s state pension on a regular basis to see how many National Insurance contributions one has made.
A state pension forecast can reveal whether or not a person has any gaps, as well as advice on how to close any gaps.
On Gov.uk, you can get all of this information.
Mr Shaw offered a second suggestion for increasing state pension income: deferral.
“This will delay when you receive your state pension, and the government will pay you interest on your state pension for each year you delay,” he explained.
“If you are expected to qualify for the state pension this year, you will receive a one percent deferral rate for every nine weeks you delay.
“That equates to around 5.8% every year, and that increment is added to your state pension.
“To be eligible for an uplift, you must defer for at least nine weeks. Finally, you’ll notice that the weekly amount you receive increases.”
Mr Shaw advised Britons to start by looking at Gov.uk.
This will indicate whether or not people should take steps to increase their state pensions.
“To check your state,” he replied. “Brinkwire Summary News.”