06-08-2015, 01:52 PM
1
Buying additional state pension.
With the demise of the 'Pensioner bond', I read that the govt. is introducing the chance to invest a lump sum to buy additional state pension. This will give up to £25 a week extra, be inflation proofed and in the event of snuffing it, your spouse will get 50%.As an example, an investment of £22,250 for a 65 year old buys an extra £25 a week (indexed) . This assumes you'll live 17 years to get your money back but equates to nearly 6% return.
I think it's aimed at people who might cash in their pension pot and look for something better than an annuity.
06-08-2015, 03:12 PM
3
Re: Buying additional state pension.
George
if you are talking about what I think you are talking about this is aimed at people of a certain age who have not yet retired .It was being discussed on The Money Programme a few weeks ago. Is this it...
https://www.gov.uk/state-pension-topup
Calculate how much you’ll need to contribute. You must be:
a man born before 6 April 1951
a woman born before 6 April 1953
06-08-2015, 03:59 PM
4
Re: Buying additional state pension.
Originally Posted by Meg
->
George if you are talking about what I think you are talking about this is aimed at people of a certain age who have not yet retired .It was being discussed on The Money Programme a few weeks ago. Is this it...
https://www.gov.uk/state-pension-topup
ETA Because of my age, if I wanted to get an extra £25 a week pension I would need to pay a lump sum of £21,775
06-08-2015, 04:52 PM
5
Re: Buying additional state pension.
Yes, it doesn't exactly strike me as a great deal. I was simply looking for another investment product since I'm approaching 65 and the pensioner bonds are no more, when I stumbled upon this.I was hoping to see the interest rates rising and us savers getting a bit more. Next year the first £1k of savings interest will be tax free. Again, not much, but I'll take every penny I can get. I wonder how that will affect the take-up of ISAs?
06-08-2015, 06:42 PM
6
Re: Buying additional state pension.
Originally Posted by orangutan
->
Eek! If you had £21,775 it would give you £25 per week for 16 years even without earning any interest. I'd rather hang on to it and be in control. Might win more on premium bonds!
I would be over 80 and I am not sure I will last that long .I don't have any spare cash to invest anywhere
|
|
