“Top-up” pension scheme to start tomorrow
Applications for the new "top-up" pension state pension scheme will start tomorrow, which allows pensioners to boost their retirement income by up to £25 per week for a one-off payment.
Existing pensioners and those who reach retirement age before 6 April 2015, who are entitled to the state pension are eligible for the scheme.
Pensioners can choose to top up the state pension by between £1 and £25 a week, with the upfront cost determined by how much an individual wants to get each week and how old that individual is when they make the contribution.
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Men born before 6 April 1951, and women born before 6 April 1953 will be eligible. The older the individual is, the less they will have to pay in exchange for an income boost.
A calculator has been made available online, and there is an 18 month window to apply for the pension top-up.
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The government is moving to a more generous state pension worth just over £150 per week, and the "top-up" scheme is a way to help those who would otherwise miss out as they had already retired.
This is the latest in moves from chancellor George Osborne in revolutionising pensions, following on from last year's Budget, where he announced more freedoms by removing the need to buy an annuity.