State pension payments could be increased through national insurance contributions | Personal Finances | Finance


State pension payments are vital for millions of retirees, however, some may not receive the full amount. The new state full pension currently stands at £ 179.60 per week and is based on national insurance contributions paid throughout a person’s life. People will generally need at least 10 years of eligibility on their NI record to get a state pension, and at least 35 years to get the full amount.

“Keep in mind, however, that if you have a few more years to go before you retire, you may be able to reach your 35 years of contribution even if you have gaps on your record.

“The closer you get to retirement, the easier it will be for you to deal with this. “

There is also, of course, the notion of the cost of voluntary contributions to National Insurance to keep in mind.

This may vary depending on the circumstances, but there are costs for the current tax year described by the government.

The standard cost of Class 3 National Insurance contributions is £ 15.40 per week, or £ 880.80 for the whole year.

Mr Monk added: ‘For the current state pension, making an extra year of voluntary contributions to the IN means an extra £ 5.13 per week of state pension – or £ 266.83 per year.

“On that basis, someone purchasing an additional year of NI would recoup their voluntary contribution in about three years and four months via a higher state pension.

“In other words, it is very likely that it makes financial sense to purchase additional years if you can.”

If a person has questions about voluntary national insurance, the government website encourages them to contact HM Revenue and Customs (HMRC).

In addition, a person can use the information from the Government Future Pensions Center.

Here they can find out whether or not they will benefit from voluntary contributions to national insurance.

The center also offers advice on what contributions to make and how they can be made.


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