Nat Ins Contribs and Child Benefit

PettyPace

I have recently taken early retirement and the wife is still working. I have been 'contracted out' for State Pension purposes throughout my career (although I have > 35 years NI contribs) and we have 3 kids under 12, for whom my DW receives Child Benefit.
Can anyone tell me whether we would we be better to transfer the Child Benefit to my name (rather than DW) since, as I understand it, the NI contributions may then count toward my additional state pension?

molerat

You already have a "full house" so it will make no difference to your NI record at present as it only provides for basic pension entitlement. I think it will make a difference post 2016 and add to your pension if below the max, have you received a SP statement - is it above the £148 max new pension ?

PettyPace

Thanks for the response. I've requested a SP statement this week but, like others, will have to wait 5 weeks or so. It seems to be a 'murky area' as even the NI people I spoke to this morning seemed a bit confused. I suspect that my additional pension will be below the max due to the contracting-out aspect, so I'm inclined to have the Child Benefit in my name just in case....

xylophone

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf

https://www.gov.uk/new-state-pension/your-national-insurance-record-and-your-state-pension

If you reach State Pension Age after 6 4 16 you should read both the above.

If you have contracted out for all or most of your working life, it is very probable that like the man in the example, your foundation amount will be below the value of the new State pension.

The claiming of CB for under 12s carries entitlement to a credit - it is therefore possible that until the youngest is 12 (or you reach SPA), you will be able to increase your state pension entitlement?

PettyPace

This is very helpful. Thanks Guys!