Wife's State Pension position

TrickyDicky101

My wife is aged 34 and for the past 9 years has not worked as she has stayed at home looking after our kids, oldest of whom is 9, youngest 3. Previous to this she was in full time employment from the age of 17.

By virtue of the fact I am a higher rate taxpayer, from January this year she has elected not to receive child benefit.

What impact - if any - does this have on her accrual of State Pension benefits? She has not at any point elected to pay married woman's stamp.

margaretclare

She'll receive credit for the years she worked. What she needs to find out is whether she can still accrue Home Responsibilities Protection (it's called something else now) without actually receiving CB. There is also the possibility that she may return to work at some time in the future, as she's so young.

jem16

TrickyDicky101 wrote: »

What impact - if any - does this have on her accrual of State Pension benefits? She has not at any point elected to pay married woman's stamp.

It will mean that she will no longer have automatic NI credits for looking after a child under 12.

https://www.gov.uk/national-insurance-credits/eligibility

How high into higher rate tax are you? Would it be possible to pay more into your pension to allow you to keep Child Benefit and retain the credits for your wife?

nearlyrich

At 34 she would never have had the option of the "Married Woman's Stamp" I am early 50's and it went before I got married (1978 rings a bell)

atush

jem16 wrote: »

It will mean that she will no longer have automatic NI credits for looking after a child under 12.

https://www.gov.uk/national-insurance-credits/eligibility

How high into higher rate tax are you? Would it be possible to pay more into your pension to allow you to keep Child Benefit and retain the credits for your wife?

I agree, you should look into higher pension payments for yourself (or in fact any if you haven't) as these will take you out of HRT, or below the threshold where 100% of it is clawed back (ie 60K) allowing her to still receive it and NICs.

now, she will have 3 years, plus the years she worked plus the last 9 years up to Jan. So she need enough to get up to 35.

SnowMan

TrickyDicky101 wrote: »

My wife is aged 34 and for the past 9 years has not worked as she has stayed at home looking after our kids, oldest of whom is 9, youngest 3. Previous to this she was in full time employment from the age of 17.

By virtue of the fact I am a higher rate taxpayer, from January this year she has elected not to receive child benefit.

What impact - if any - does this have on her accrual of State Pension benefits? She has not at any point elected to pay married woman's stamp.

Provided your wife was in receipt of child benefit prior to opting-out of receiving child benefit then she should continue to get her credits for qualifying years for her state pension.

However speaking more generally it is important that people claim child benefit and then opt-out of receiving it in order to get their credits.

Some info on the HMRC website here and here.

Worth ringing the HMRC national insurance helpline just to confirm all is in order though on 0845 302 1479 between 8.00 am and 5.00 pm during the week.

TrickyDicky101

Thank you all.

I am not in a position to increase my pension payments further to reduce my income below 60k.

Were we to reinstate her claim for Child Benefit (and thus increase the income tax I pay) would this mean she would get credit for these years from now where she does not work?

TrickyDicky101

SnowMan wrote: »

Provided your wife was in receipt of child benefit prior to opting-out of receiving child benefit then she should continue to get her credits towards her state pension.

However speaking more generally it is important that people claim child benefit and then opt-out of receiving it in order to get their credits.

Some info on the HMRC website here and here.

Worth ringing HMRC just to confirm all is in order though.

This was posted after i started writing my post above.

Many thanks - I will take this up with HMRC.

margaretclare

nearlyrich wrote: »

At 34 she would never have had the option of the "Married Woman's Stamp" I am early 50's and it went before I got married (1978 rings a bell)

Yes, this is correct. It was the start of the tax year April 1978.