UK state pensions: later deadline for NI top-ups that can mean £55,000 extra

theguardian.com:

Pay £800 now and, if you live a long time, get back £5,500-plus in total. If you can afford to hand over £8,000, it could be £55,000 or more. That, in very simple terms, is the pensions deal being offered to many people by the government, experts say.

The deadline for taking advantage of what has been called a “bargain price” was originally going to be 5 April but the good news is that this week the government extended it to the end of July.

This is all about topping up your state pension, which may sound dull and complex but it can generate a better rate of return than almost any other way of using your savings, says the former pensions minister Steve Webb, now a partner at the actuarial business LCP.

Anyone who has worked abroad, earned a low salary or had gaps in employment should be paying particular attention.

Those who are eligible have until 31 July to act, after the government decided to give people more time in response to a “surge” in the numbers of individuals contacting it. There had been reports of jammed phone lines.

Many people are unaware that they can cash in by paying voluntary national insurance (NI) contributions to plug past gaps in their NI record and boost their state pension entitlement.

Under the new state pension system introduced in April 2016, you typically need a 35-year NI contribution record to qualify for the full state pension amount, which is currently £185.15 a week.

Deductions are made for any missing years but if you have gaps in your record, you can remedy that situation. Under normal rules it is only possible to plug gaps in your NI record up to six years after the year in question. So normally you would only be able to go back to 2016-17 at present.

However, for a limited period, people