Pension for a stay at home mum

Rollinghills

I have been a stay at home mum for 2.5 years. Prior to that I had a well paid job and I will go back to work sooner or later depending on whether we have another child or not. We have never claimed any benefits incl child's benefit as my husband earns a high salary. I was never on maternity pay as I was made redundant before pregnancy.

I have read that stay at home mums will receive a full state pension when they retire. But do I have to let anyone know that I am a stay at home mum? Does anyone know how it works? As far as HRMC know I'm just not working, should I someone report that I am a stay at home mother since the birth of our child?

Also, as a non tax payer at the moment is there any advantage in putting money into a private pension for me as opposed to saving in ISAs etc?

jem16

Rollinghills wrote: »

I have read that stay at home mums will receive a full state pension when they retire. But do I have to let anyone know that I am a stay at home mum? Does anyone know how it works?

That's been the case for a long time now with Home Responsibility Protection and now National Insurance Credits for parents or carers. What will change slightly is that it won't just give an entitlement to the Basic State pension as it does now.

You have to be claiming Child Benefit to get these credits and are usually whilst you have children up to 12 years old.

More info here;

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

Also, as a non tax payer at the moment is there any advantage in putting money into a private pension for me as opposed to saving in ISAs etc?

Yes - non taxpayers can contribute £2880 to a pension and it will be grossed up to £3600.

Rollinghills

jem16 wrote: »

You have to be claiming Child Benefit to get these credits and are usually whilst you have children up to 12 years old.

More info here;

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

I need to get my head around this.
We could have claimed child benefit between the birth of our child (Nov 12) and April 13 when it became means tested. Would that make me eligible in some way?

On the other hand I read this on the government website
Child Benefit tax charge
You’ll still be eligible for Child Benefit even if you choose to stop receiving it because you or your partner has an income over £50,000. Stopping your Child Benefit payments does not affect your entitlement - you can always change your mind and restart them.

Does that mean I am eligible, I am just choosing not to receive it? I've never realised this. And clearly it has serious consequences!

And thanks for the tip about the private pension, it sounds like a good idea.

xylophone

See also https://forums.moneysavingexpert.com/discussion/5202982 Post 5

Re pension http://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/

A stakeholder might suit for the time being.


https://www.gov.uk/new-state-pension/overview

Rollinghills

Thanks xylophone, I have realised this myself - I am eligible for child benefit just choosing not to receive it! Who would have thought, I absolutely wasn't aware about this distinction. I think I need to call HRMC, they don't even know I have a child!

atush

You actually have to claim the CB though- it isn't automatic. and I dont know if you can get previous years if you haven't claimed. So get down there monday and claim for this year and ongoing.

Although your OH may be a high earner, he could put more into a pension for himself that would bring him under 60K to get some CB.

xylophone

I am eligible for child benefit just choosing not to receive it! Who would have thought, I absolutely wasn't aware about this distinction. I think I need to call HRMC, they don't even know I have a child!

https://www.gov.uk/child-benefit/overview

"You can choose not to get Child Benefit payments, but you should still fill in the claim form because:

it will help you get National Insurance credits which count towards your State Pension
it will ensure your child is registered to get a National Insurance number when they are 16 years old"

Rollinghills

atush wrote: »

You actually have to claim the CB though- it isn't automatic. and I dont know if you can get previous years if you haven't claimed. So get down there monday and claim for this year and ongoing.

Although your OH may be a high earner, he could put more into a pension for himself that would bring him under 60K to get some CB.

I will certainly be on the phone to them on Monday. Should I call the Child benefit section?

I really wish I had known about it because in the past 2-3 years my husband could have contributed more to his pension to get below 60k taxable income. However we are buying a house and getting a pretty large mortgage so I think he'll have to reduce his pension contributions in the next tax year. This tax year it could work if he can make a lump sum additional contribution to his company pension, I'll ask him.

This is all complicated. So to get the NI credits do I need to be eligible (I am) or do I need to be claiming Child benefit, I'm still confused.

Rollinghills

xylophone wrote: »

https://www.gov.uk/child-benefit/overview

"You can choose not to get Child Benefit payments, but you should still fill in the claim form because:

it will help you get National Insurance credits which count towards your State Pension
it will ensure your child is registered to get a National Insurance number when they are 16 years old"

Brilliant. I will fill in the form and give them a call as to whether they can apply it retrospectively.

sandsy

See:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/359765/ch2-flat.pdf


It clarifies that you can only backdate for 3 months but that it's important to claim for state pension protection even if your husband's income makes you ineligible to receive child benefit.

jem16

Rollinghills wrote: »

This is all complicated. So to get the NI credits do I need to be eligible (I am) or do I need to be claiming Child benefit, I'm still confused.

You need to be eligible and you need to claim it.

If you don't receive it because of your husband's income that is fine.