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...

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