Chandrashekar BhatBy: Chandrashekar Bhat
Britain’s government has extended the deadline by nearly three months to fill historic gaps in National Insurance records and help increase the amount its people receive in state pension.
The new deadline to top up the state pension is July end instead of April 5 and the extension followed public demand, the government said.
Anyone with gaps in their National Insurance record from April 2006 now has more time to fill the gaps.
According to actuarial business LCP, investing in state pension top-ups can generate a better rate of return than almost any other way of using savings.
Someone with 10 missing years could pay out a little more than £8,000 to fix the gaps but see a boost of £55,000 in state pension over a typical 20-year retirement, it said.
LCP partner and former pensions minister Steve Webb said paying voluntary National Insurance contributions can be “great value for money” for many people.
It can help them boost their state pension in a “cost-effective way”, he said earlier this year.
Victoria Atkins, the financial secretary to the treasury, said the government recognised the importance of state pensions for retired individuals, “which is why we are giving people more time to fill any gaps in their National Insurance record to help bolster their entitlement.”
