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What is the State Pension top-up scheme?

If you are reaching the State Pension age before 6th April 2016, you are able to use a new scheme designed to safeguard your long-term financial security.


The State Pension top-up scheme can give pensioners an extra £1 to £25 a week in exchange for a lump sum payment. It is being introduced as an option for existing state pensioners to increase their state pensions, ahead of the introduction of the new State Pension in April 2016. The top-up scheme is available between 12th October 2015 and 5th April 2017.

For men aged 65 or older and women aged 63 or older, you are being offered the chance to increase your state pension by £25 per week, giving you guaranteed extra income for life.

The State Pension top-up scheme will be available for the next 18 months. If you think you can benefit from this scheme, you will have the opportunity to buy additional State Pension, worth up-to £1300 per year. In most cases, surviving spouses and civil partners will be able to inherit at least 50% of the extra pension.

The State Pension top-up scheme is an opportunity for people to increase their guaranteed retirement income for the years ahead, with a boost that will be index-linked. This means that you and your spouse or civil partner will be protected from inflation.

The cost of a State Pension top-up is based on a person’s age and takes average life expectancy into account. For a 65-year-old, an extra £10 of pension per week will cost £8900, whereas for a 75-year-old the contribution needed for the same amount of pension is £6740.

Is the State Pension top-up scheme for me?

If you would like more information about the State Pension top-up scheme or would like to book a free review meeting to see if you could benefit, please contact Terry Lawson using the details below.

Ad Valorem Accountancy Services

01908 219100

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Posted in: Blog, Pensions, Terry's Word, Uncategorized