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State pension update

State pensions are more complicated than one might think, particularly prior to 2016.

Your state pension is valuable. To buy an annuity paying £179.60 per week (the current full state pension amount) would cost over £300,000. I want to make the point that your state pension income (and your spouse’s if you have one) is not an insignificant income stream in your retirement.

Making sure you and your spouse have the fullest state state available (or affordable) is well worth considering.

If you have missing years from your state pension these can be purchased. If they give you the full impact (see below) they offer an extra £5.13 per week at a cost of £800.80 per purchased additional qualifying year (which if you calculate in weeks is £15.40pw), so, once you are 3 years beyond your state pension age (66/67/68 years old) the cost of these additional years has been paid off.

The state pension rules were simplified in 2016 but I would add an asterisk regarding years preceding 2016. You can buy additional years for 2006 until 2016 up until 5/4/2023, I would suggest you call 08007310175 (have your national insurance number at hand) and get their helpline to confirm that any additional contributions for 2006-16 made will actually increase your payment, and, by how much before you buy them.

I would suggest that any contributions that increase your income to the full £5.13 are well worth making.

FOR INVESTMENT ADVICE REGARDING YOUR PENSION OR OTHER INVESTMENTS PLEASE CONTACT Elliott Wilson ACSI DipPFS AF3

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