State pension top-up surge

SAVERS are topping up their state pensions in record numbers, figures from the taxman show.

The surge is likely to reflect the introduction of the new state pension in 2016, which gave people the opportunity to plug gaps in their National Insurance record through voluntary contributions.

People paid £ 119.3 million in voluntary contributions last year, compared with just £12.8 million in 2016/17 — a ninefold increase in just two years.

Savers who pay around £780 per year can get back around £250 every year on their pensions.

Steve Webb, director of policy at Royal London, says: ‘Topping up your state pension can be a very effective way of using your money. But it is important to be careful which years are bought back, as in some cases paying extra NICs will not always increase your pension.’

For more information, contact the Future Pension Centre on 0800 731 0175.