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State Pension Boost
clem8is
Posts: 7 Forumite
Hello
According to the calculator I would have to pay in £22250 to boost my pension by £25 Per Week. That means it would take over 17 years to recoup that money (forgetting about inflation etc & the additional tax I'd have to pay on my private pension) & take me to the age of 82. That doesn't seem to be a very good deal to me. Surely I'd be better off just keeping the money & taking the £25pw out of that, also I'd get at the moment about 1% interest rate min & compounded that would seem to be a better deal? Or Have I got the wrong end of the stick? There also is no mention of a tax allowance on the lump sum so that seems to make it even worse
According to the calculator I would have to pay in £22250 to boost my pension by £25 Per Week. That means it would take over 17 years to recoup that money (forgetting about inflation etc & the additional tax I'd have to pay on my private pension) & take me to the age of 82. That doesn't seem to be a very good deal to me. Surely I'd be better off just keeping the money & taking the £25pw out of that, also I'd get at the moment about 1% interest rate min & compounded that would seem to be a better deal? Or Have I got the wrong end of the stick? There also is no mention of a tax allowance on the lump sum so that seems to make it even worse
0
Comments
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The best deal is to defer your State Pension (you can do this once even if you are already in receipt) and get around 10.4% increase for each year.
Over twice the value of the top-up, also index linked.
The top-up isnt a bad deal (where else would you get 5% index linked) but deferral is so much better.0
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