What is Class 3A?

  • Mark Morton
  • 8 May 2014 00:00

The Government wants to offer more to existing pensioners and people who reach State Pension age before 6 April 2016 when the single-tier pension is introduced to give people in the pre-single tier population the opportunity to increase their state pension in retirement.

The Government intends to introduce Class 3A in October 2015 and the scheme will be open for a limited period. There will be two entitlement conditions:

• contributors must have entitlement to a UK State Pension (either basic State Pension or additional State Pension); and

• must reach State Pension age before 6 April 2016.

There is little detail at the moment and the question will always be 'Is it worth it?' but there is no doubt some of your clients may wish to think about it.

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