Non working wife - what about her pension!

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
3 replies 3.7K views
GotAnySpareChangeGotAnySpareChange Forumite
18 Posts
My wife has not worked now for 2 years as she is bringing up the children to schooling age.

Pitching this against childcare costs and the hectic lifestyle you have to live to work all day and pick up kids this is pretty much what we want to do.

But I'm really concerned about the fact that my wife doesnt get the basic state pension for this period.... what can she do about that?

I was wondering if she worked for a small while to earn just enough to get her NI contributions up to a certain level if this is a viable or practical way of achieveing this? Obviously she would want to get the highest possible paid job and arrange childcare for a minimal period with family or whatever, but it seems a rotten thing to have to do to the employer.

Further, I suppose at least she can 'sign on' whilst looking for this high paid job? right?

any suggestions, ideas, or related experiences?




  • Debt_Free_ChickDebt_Free_Chick Forumite
    13.3K Posts
    She should be getting Home Responsibities Protection if you receive Child Benefit.

    This protects her Basic State Pension so she does not need to work and pay NI in order to get the Basic State Pension.

    Have a look here
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • CISCIS Forumite
    12.1K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    HRP will protect the NI record of any person claiming child beenfit , from the 6/4 after the child date of birth, up until the end of teh alst full tax year prior to the childs 16th birthday.

    HRP wont give you credits towards the basic state pension (unlike benefit credits), instead it reduces the number of years you need for a full state pension.
    ie if you need 44yrs, this would reduce to 34yrs , if you had 10yrs HRP.

    It also has the effect of reducing the number of years you need for a minimum pension, with 44yrs you'd need 11yrs minimum (25% rounded up), with 34yrs, you'd need 9yrs minimum.

    If she does work in future then the HRP will still go on to her account for any year that she's eligible for it through Child Benefit, but it wont be used against that year if that year is a qualifying year through work or benefit credits.
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  • seven-day-weekendseven-day-weekend Forumite
    36.6K Posts
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    I have 13 years HRP, from the years when I was receiving child benefit, which brings my qualifying years down to 26. During this time I was either not working, at University or working in a low-paid job where I didn't earn enough to pay NI. I have 24 years Class 1 contributions paid/credited and one year's payment of voluntary contributions so I only need one more year to get my full State pension. I may yet do another year's work before I am 60, and pay the NI this way, if not I will pay a year's worth of voluntary contributions.

    Therefore I will get my full State Pension.

    Hope this example helps as an illustration.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
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