DWP and HMRC issue joint warning to state pensioners born after 1951 or 1953
by James Rodger, https://www.facebook.com/jamesrodgerjournalist · Birmingham LiveState pensioners could boost their payments from the Department for Work and Pensions (DWP) thanks to a HMRC tool. Pensionerscould raise their state pension payments but only until a deadline in early 2025, it has emerged.
HMRC says that more than 10,000 payments totalling £12.5million have been made through a new digital service to boost payments since April. The online tool allows people to top up their National Insurance records to maximise their pension payments in retirement
This extension applies specifically to those affected by new state pension transitional arrangements, covering tax years from April 6, 2006, to April 5, 2018. Men born after April 6, 1951, and women born after April 6, 1953, are eligible to make these voluntary contributions to enhance their new state pension.
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Pensions Minister Emma Reynolds has urged those approaching retirement to take action. "We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement," she said in an update to pensioners.
"That's why I urge everyone to check if they could benefit by filling gaps before the deadline passes. Using our online tool means only a few clicks could make a huge difference to your future." Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, warns: "It is hugely important that you speak to DWP before parting with any money for voluntary National Insurance credits as they can confirm if you will definitely benefit from buying them."
People who reach State Pension age on or after 6 April 2016 will claim the new State Pension. People who reached State Pension age before 6 April 2016 will continue to get their State Pension under the old State Pension system (which includes basic State Pension and Additional State Pension and Graduated Retirement Benefit).
The rules for how you can increase your State Pension and what you can inherit will be different depending on when you and your spouse or civil partner reach State Pension age.