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Women urged to buy NI contributions
25 November 2008 16:02
Women who do not qualify for the basic state pension are being advised to purchase national insurance (NI) contributions.
The insurer Standard Life has advised those with less than ten qualifying years of work to purchase the required amount of NI contributions for the price of £8.10 per week, or £421.20 for a year.
Doing so would entitle the holder to a 26 per cent of a basic state pension, which stands at £23.58 a week, representing a significant return on initial investment.
John Lawson, head of pensions policy at Standard Life, said women looking to take advantage of the offer should make a move now, as the government has caught on that Class 3 contributions are too good a deal, which could lead to prices being raised in April 2009.
There are some restrictions to Class 3 contributions though such as only being able to purchase six years at a time, while those who are entitled to the state pension credit are exempt.
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