Is it worth 'topping up' state pension?

[MrHat]

My mum has the opportunity to top up £4k to get near enough the full state pension (due to start in June this year). She was missing a few years of contributions and by topping up, the extra money each week will mean that she will get it all back in about 3 years.

 

 

I thought it sounded like a 'no brainer' if she has the funds which she does.

 

 

However, people keep telling her (friend, relatives) that there is no point as the government are going to make the state pension the same for everybody despite contribution levels. I can't find anything about this?

 

 

Thoughts? Top-up a good idea or wasted money?

[Madamfluff]

Has she contacted the future pensions office and got an official statement of her contributions and an official estimate of her pension? if not that would be a good place to start. If she has not got enough contributions for full pension she may be able to claim pension credit to top up. I have not heard about this flat rate contributions, it was not mentioned on my own future pension statement when I got it this year, only the amount of contributions I have paid (44 years) and the amount of second pension I will get £1.75 per week for every extra year I pay full NI (whoop de do)

 

The other thing is that if this flat rate is in the future and she gets her pension in June this year then the new rules may not apply to her.

 

Best thing is to contact the pension people and then the pension credit people

 

http://www.ageuk.org.uk/money-matters/claiming-benefits/pension-credit/?gclid=CJWdy9qF9rwCFQEXwwodMSgA5w

 

This link has financial information on and she may fin d it useful

[antone]

Note also that changes to SRP entitlement tend to be slated for years in the future. I understand that some changes are proposed, but these will not affect people who are reaching pension age today, or in the next year or so.

[MrHat]

Cheers guys