Class 3A NIC

Men born before 6 April 1951 and women born before 6 April 1953 who reach pension age before 6 April 2016 can top up their state pension by paying these contributions. This opportunity is only available from 12 October 2015 to 5 April 2017. The cost of the class 3A NIC contribution depends on age and how many additional units of pension you wish to buy. The maximum number of units that can be bought is 25. One unit buys £1 extra state pension per week. For a man say aged 69 at date of payment it will cost him £801 to get £52 extra per annum. So the payback period is quite long. However a minimum of 50% of the increase can go the surviving spouse in the event of death.

Other ways of boasting state pension entitlement might be paying class 3 voluntary contributions – at current rates this is £733.20 per annum which is the same cost as someone aged 72 making a class 3A payment but might yield a greater increase in pension.

If you have been self-employed but elected not to pay class 2 NIC because of low earnings you can always change your mind and this is cheaper still – just £2.80 per week at the 2015/16 rate. This too could help your state pension.