Paying voluntary contributions

You do not have enough qualifying years to get the maximum basic pension; you may be able to pay voluntary National Insurance contributions to turn a non qualifying year into a qualifying one. However, you can go back only up to six years to fill any gaps. Married women cannot pay voluntary contributions for years when they had opted to pay class 1 contributions at the reduced rate or had opted not to pay class 2 contributions under pre-May 1977 rules. Voluntary contributions boost our basic pension, but not any additional or graduated pension.

Delaying the start of your state pension to earn extra

Another way to boost the state pension that is open to everyone is to put off starting to receive your pension. This earns an increase in the pension when payment eventually starts. This may be particularly worth doing if you will have sources of income in early retirement (for example, because you plan to carry on doing some work). You have to defer your whole state pension basic, additional and any graduated pension. If you are a married man and your wife is a claiming a pension based on your contribution record. She must consent to the deferment because her pension is automatically deferred as well (except any amounts based on her own contribution record). A wife can independently decide to defer her own pension regardless of whether it is based on her own contribution record or that of her husband. The amount of increase you earn depends on when you make the election to defer the pension:

• Where you elect for deferral before a set date (originally April 2010 but now expected to be bought forward to 6 April 2006) 1/7 percent for every week you defer the pension (but minimum increase of 1 percent overall). This is equivalent to about 7.4 percent for each whole year. You can put off your pension for a maximum of five years, giving a maximum increase of 37 percent.
• Where you elect for deferral on or after the set date (expected to be 6 April 2006) 1/5 percent for ever week you defer the pension (wit probably a minimum increase of 1 percent overall). This is equivalent to 10.4 percent for each whole year. You can put off your pension for as long as you like. The government is consulting on new rules which, if accepted, will allow you to choose to have a taxed lump sum instead of extra pension.