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

WBR group buys financial planning firm's SSAS book

WBR group buys financial planning firm's SSAS book

Part of long-term growth strategy

Jenna Brown
clock 05 May 2026 • 2 min read
The £22.40 question: Are clients in the dark on the full state pension?

The £22.40 question: Are clients in the dark on the full state pension?

'The political architecture is elegant, from the Treasury's perspective'

James Floyd
clock 05 May 2026 • 3 min read
Alltrust acquires Phoenix Wealth Family Suntrust schemes

Alltrust acquires Phoenix Wealth Family Suntrust schemes

Completion expected later this year

Jenna Brown
clock 29 April 2026 • 1 min read