Pensioners were said to be one of the great beneficiaries of the recent Budget.

Now, those in a position to save, are being given an extra incentive with the announcement of the State Pension top-up.

Under plans recently set out by the Pensions Minister, pensioners and those who reach pension age in the next two years will be able to acquire up to £25 of additional State Pension per week. The State Pension top-up will be available from October 2015 to all those reaching state pension age before April 6, 2016.

The scheme will allow people the opportunity to get inflation-proofed additional State Pension by making Class 3A – a new Voluntary National Insurance Contribution – allowing them to top up their additional state pension.

Class 3A will be set at an actuarially fair rate and will be calculated using the latest estimates of life expectancy from the Office for National Statistics (ONS).

The cost of a State Pension top-up is based on a person’s age and takes average life expectancy into account. For a 65-year-old, an extra £1 of pension per week will be £890, whereas for a 75-year-old the contribution rate for the same amount of pension is £674.

Examples of those expected to gain are a couple with savings where one has a good occupational pension and is paying tax but the other has little more income than the full basic State Pension.

This could be particularly beneficial to women who have an average weekly State Pension amount of £109 compared to the average amount for men which is £141. Around half of pensioners pay tax and many couples are expected to be in the position where one is paying tax and the other isn’t.

Self-employed people who have sold businesses at retirement but where their capital is not providing the pension they want, and older pensioners who may welcome a simple offer from the state to increase their income will also benefit.

But Jean Walker, a founder member of Bradford & District Senior Power, says the rising costs of living prevent many from being able to save and low interest rates on savings haven’t enticed those who could afford to put money aside to do so.

“It’s all right saying you can save, but I want to know where they are going, how secure they are and what rate of interest?” says Jean.

“It is all right political parties coming up with these ideas, but they don’t think them out enough.”

David and Julia Forrester, of TaxAssist Ilkley and Keighley, say while many people will welcome the opportunity to top-up their state pensions, the index-linked scheme could particularly appeal to the self-employed who currently qualify for only the basic state pension, the devil can be in the detail.

For those considering taking up the offer, they recommend a close comparison with the costs and potential benefits of other savings before making their decision. Seeking financial advice is also a suggestion.

Caroline Abrahams, charity director at Age UK, said: “The additional voluntary contributions could help some people top-up their additional pension if they can afford to do so, but they will need to consider carefully the cost and benefits.”

Steve Webb, Minister for Pensions, says: “The State Pension top-up will provide an opportunity for people to boost their retirement income by up to £25 per week. This is another bold action in how we build a stronger economy through choice in retirement income.

“The scheme will give them a guaranteed, index-linked return and will be particularly attractive for women pensioners who will draw the higher pension for longer. It will also help the self-employed, who currently qualify for only the basic State Pension.”

The top-ups can be inherited, with a surviving spouse or civil partner entitled to at least 50 per cent of the additional State Pension.

This measure, along with the newly-announced Pensioner Bond that will be available from National Savings and Investments in 2015, demonstrates the Government’s commitment to a fairer society by improving outcomes for those in retirement and providing increased flexibility for people to make the most of their savings.

People are able to pre-register their interest online at gov.uk/ state-pension-topup or by calling 0845 6004270 or 0345 6004270.

An online calculator is available which illustrates the contribution rates based on age and how much people wish to increase their additional pension by at gov.uk/state-pension-topup.