Government projections indicate that, over the average 23 years spent in retirement by people in Britain, a woman will receive nearly £50,000 less than a man. This figure is staggering, but not necessarily that surprising. Statistically, women are likely to live longer, but are also likely to have much smaller financial resources. Taking time out of work to look after children or, say, elderly parents greatly increases the chances of a woman’s latter years being blighted by poverty.
If you have stayed at home to bring up children, or if you have acted as an unpaid carer for family or friends, then it’s likely that your employment history has a few gaps in it. This means that you’ve probably missed some National Insurance contributions (NICs). If you are approaching retirement, you should be aware that this could significantly reduce your entitlement to the full basic state pension.
The good news is that it’s not too late to do something about it – but you should act fast if you want to make the most of a chance to boost your pension pot. The Department for Work and Pensions (DWP) has advised anyone in this situation to take advantage of an opportunity to increase their state pension by thousands of pounds by making extra voluntary contributions by 5th April 2011. Thousands of people could be eligible for a pensions top-up for life, as well as for back payments that could cover the up-front costs of their contributions.
If you want to provide for a more comfortable future by topping up your pension, call Martin now on 02476 384171.
