Act now to fill the gaps in your premiums before the cost spirals in April

Savers who miss essential years of AOW contributions must now act to encourage monthly payments with a pension.

You could save £ 153 a year by updating your current state pension instead of waiting until April, when costs for each missing year rise.

If you qualify for the new AOW – meaning you retire after 5 April 2016 – you can earn more each month by supplementing gaps in your national insurance record.

You could save £ 153 a year by updating your current state pension instead of waiting until April, when the costs for each missing year jumps

You could save £ 153 a year by updating your current state pension instead of waiting until April, when the costs for each missing year jumps

You could save £ 153 a year by updating your current state pension instead of waiting until April, when the costs for each missing year jumps

Do this by paying voluntary national insurance premiums for class 3 for the tax years 2006 to 2016.

Steve Webb, a former minister of pensions, now policy director at insurance company Royal London, says: "For many people, supplementing their state pension with these voluntary contributions can yield very good returns because the costs are subsidized by the government. 39;

Contributions for each missing year go to £ 15 a week in April (£ 780 for a year).

If you buy the same benefit now, you will receive an additional £ 4.70 per week (about £ 240 per year) for your state pension – you only pay £ 12.05 per week (£ 626.60).

That is a saving of £ 153.40. The costs vary depending on where you have gaps. In the tax years from 6 April 2006 to 5 April 2007 and from April 2009 to 2010 you pay £ 13.25 instead of £ 15 – a total of £ 689. This saves £ 91.

The costs in the following six tax years starting from April 2010 to April 2011 are £ 12.05 (£ 626.60), £ 12.06 (£ 627.12), £ 13.25 (£ 689), £ 13. , 55 (£ 704.60) £ 13.90 (£ 722.80) and for From April 2015 to 2016 the cost is £ 14.10 (£ 733.20).

Jon Treharne, managing director of Shore Financial Planning says: & # 39; Many people do not know that the costs will rise in April. They can best be advised to act now. & # 39;

Whether voluntary contributions will stimulate your state pension depends on your circumstances.

Your final state pension depends on two calculations: how much you would have received under the old rules on 30 years of premiums plus any pension related to the state earnings and what is offered under the new rules – the full fixed pension minus deductions for each year you did not pay in the scheme. You get the biggest.

If the figure is more than the full fixed pension, now £ 164.35 per week less deductible items, any contributions can be a waste of money.

Deductions include the amount of pension accrued by employers by issuing the state pension at the time it was granted.

Mr. Webb says: & # 39; You must check the extra contributions you earn on a higher state pension. Not everyone will benefit from this because of the complex transition rules after the transition from the old to the new state pension in 2016. & # 39;

Please contact the Future Pension Center on 0800 731 0175 or write to The Pension Service 9, Mail Handling Site A, Wolverhampton, WV98 1LU to find out if you benefit from this.

See the Royal London topping guide: royallondon.com/media/good-with-your-money-guides/topping-up -your-state-pension.

sy.morris@dailymail.co.uk