A Government offer enabling savers to boost their State pension by making a lump sum payment to secure additional income of up to £25 per week ends on 5th April 2017.
The offer has been available since 2014, when it was introduced to enable people who lost out as a result of the replacement of the old basic State pension by the new flat rate pension to buy additional guaranteed pension income on favourable terms. Since then, continuing low interest rates have made the offer even more attractive.
The question of whether an individual saver should take up the offer depends on a number of factors, including age, health, marital status, tax bracket and inheritance plans.
What can be said is that the offer is unlikely to be attractive to higher-rate taxpayers in questionable health, but it should be given serious consideration by anyone else who might otherwise have intended to buy a retirement annuity.
For further information, please contact your adviser.