Standard Life has joined the debate following the proposals to amend the rules regarding national insurance contributions. Currently, if you have a break in making contributions you have a six-year period in which to make additional, voluntary Class 3 contributions.
However, the new proposals, which have been passed by the House of Lords, would allow people to buy up to nine years contributions when they reach retirement, in order that they will receive full state pension. Standard Life is urging the Government not to overrule these proposals, as they believe that women in particular will benefit from them.
Our view
We agree with Standard Life. If this Government is truly committed to encouraging us all to make pension provision, it has to allow people to make up for lost time within one on their core pensions, i.e. their state pension.