Voluntary NICs could help top up state pensions for 500,000 - Royal London

Heavily-subsidised opportunity under new State Pension

Hannah Godfrey
clock • 2 min read

Half a million workers retiring before state pension age will have the chance to top up their state pension at "bargain-basement rates" over the next five years, according to Royal London.

The group says this can be achieved by paying heavily-subsidised voluntary National Insurance contributions for the years between the date a person retires and the date they reach state pension age. Under the new State Pension system, the full flat rate of £155.65 per week is paid to those who have made 35 years of full-rate National Insurance Contributions (NICs). Those who were members of public sector pensions schemes or the schemes of many large employers, however, generally paid a reduced rate of NICs because their scheme was ‘contracted out.' Royal London policy director Steve W...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

IHT on pensions to cause 'operational complexity and risk' for providers

IHT on pensions to cause 'operational complexity and risk' for providers

Expected to lead to delays in payments to beneficiaries

Isabel Baxter
clock 31 January 2025 • 3 min read
DB transfer advice slows since FCA's 2020 crackdown

DB transfer advice slows since FCA's 2020 crackdown

Many firms have stopped offering DB advice, regulator finds

Isabel Baxter
clock 30 January 2025 • 2 min read
SSAS and divorce: Everything advisers need to know

SSAS and divorce: Everything advisers need to know

'It's estimated that only 4% of divorces include a pension'

Caitlin Southall
clock 30 January 2025 • 5 min read