Newspaper article Manchester Evening News

Boost Your Retirement Income with State Pension Top Up

Newspaper article Manchester Evening News

Boost Your Retirement Income with State Pension Top Up

Article excerpt

WHAT IS STATE PENSION TOP UP AND IS IT RIGHT FOR YOU? If you or a family member have retired, or are approaching retirement, you may be considering ways to ensure financial security in later life. Or you might simply want to make sure you or your family can continue doing what they enjoy.

State Pension top up is a government scheme that gives you a way of boosting your retirement income by between Pounds 1 to Pounds 25 a week in exchange for a lump sum payment.

You will be eligible if you're entitled to a UK State Pension and you have already reached your State Pension age, or will reach it before 6 April 2016. That is, you are a man born before 6 April 1951, or a woman born before 6 April 1953.

The scheme is open for applications for a limited time, until 5 April 2017. There's more to the State Pension top up than simply the additional pension amount. It is also: Guaranteed for life Protected against inflation - the pension payment is linked to the Consumer Price Index (CPI), so it will be protected against inflation.

Inheritable - in most cases, your spouse or civil partner can receive between 50 per cent and 100 per cent of the State Pension top up pension payment after your death. Your surviving partner will, in most cases, get the extra pension once they reach State Pension age, if they haven't already reached it.

The rules on whether State Pension top up is inheritable are the same as for additional State Pension. You can find out more by searching additional State Pension on GOV.UK.

Whether it is the right option for you depends on your personal circumstances. We recommend that you take independent advice to make sure it is right for you before you make your payment.

WHAT IT COSTS The cost depends on how much you want to add to your State Pension income.

It's also affected by how old you are when you make the payment: the older you are, the less you need to pay.

It's worth noting that you can apply even if you have already built up the full basic State Pension and have some additional State Pension.

Also you are still eligible if you are currently deferring (or you plan to defer) your State Pension. …

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