Synopsis: The DWP has issued an update to individuals who have registered their interest in topping up their State Pension via Class 3A NICs.

The DWP has recently issued an update to individuals who have registered their interest in topping up their State Pension via Class 3A NICs, our Bulletin dated 3 June 2016 refers.

The DWP update, issued by e-mail, see this PDF, explains the next steps for individuals who have expressed an interest.

In addition, the e-mail includes the following links:

· A YouTube video of Alan Dick, Director of the Institute of Financial Planning explaining how State Pension top up works.

· A link to the DWP’s on-line calculator to work out the costs of Class 3A contributions. It is worth noting that although the calculator asks the question whether the calculation is being done for a male or a female, it doesn’t make any difference to the quoted cost, but it is there to filter out the difference in SPA between males and females. At the end of this process, it includes details of how to register interest in receiving updates by e-mail. This is done by sending an e-mail to

In addition to the above the e-mail includes brief summary of the options:

· State Pension top up will be available for a limited period of 18 months from 12 October 2015 to 5 April 2017

· It offers a one-off opportunity to increase an individual’s State Pension income for life, protected against inflation

· It can provide an additional income of between £1 and £25 per week equating to £52 and £1,300 a year respectively.

· The one-off contribution needed is based on the individual’s age; reducing with age. For example, for a 65 year-old, to get an extra £5 a week of State Pension for life (£260 a year), they would need to pay a lump sum contribution of £4,450, compared to £3,370 if they were aged 75.

· In most cases, a surviving spouse or civil partner inherits at least half of the State Pension top on the individual’s death.


Given the attractive return on capital that is typically double the rate offered for a similar annuity in the open market it is an offer that should seriously be considered by those who will have attained SPA on or before 5 April 2016, if they are income poor cash rich.

Why not talk to the professionals about properly managing your finances

Call us on 01273 457100 020 7871 5387 01403 333666

Or email us on

Or just take a look at how we help our clients

Query Form