Pensions minister Ros Altmann has urged people to seek independent advice over the recently introduced state pension top-up scheme.
Last October the government introduced the top-up initiative, which allows individuals to increase their state pension entitlement by up to £25 a week through buying additional guaranteed income with a lump sum.
In a blog published today, Altmann (pictured) called on people to seek independent advice over the scheme to find out if it’s the best option.
‘I really would urge you to seek independent advice before deciding what is best for you,’ she said.
Not everyone is eligible to receive the full state pension when it comes into effect in April, as only those with 35 years of full national insurance contributions will be entitled for the full amount.
Altmann added the scheme might be particularly beneficial for women who have been unable to generate large state pensions.
‘I want to stress that this scheme will not be suitable for everybody and it is important to seek guidance or advice to check whether it is right for you,’ she said.
‘However, it is likely to be of particular interest to people who historically haven’t had the chance to build significant amounts of state pension, such as many women or those who may have been unable to build earnings-related additional state pension in the past.’
She said thousands of people have already applied for the top-up initiative and ‘we are continuing in our efforts to let more people know about the scheme, if they could benefit from it’.
Dr. Ros Altmann – investment expert, investment banker …