From Monday 12th October, anyone currently receiving a State Pension or due to receive one before 6th April 2015 is eligible to ‘top up’ their State Pension.
This scheme is called Class 3A, and is most suitable for people with a full National Insurance record (ie those who have been employed rather than self employed).
According to the DWP, the cost to a pensioner aged 65 buying an income of £1,300 per year would be £22,250, whilst the cost of an equivalent private sector annuity would be £35,215.
For those with an appetite for lower risk profile investments, this looks like an attractive offering.
The scheme runs for 18 months, due to end in April 2017.