State pension top up for part year

Sarahspangles

Zerforax said:

Dazed_and_C0nfused said:

You're going to sadly disappointed about the backdating period.

https://www.litrg.org.uk/tax-guides/tax-credits-and-benefits/child-benefit/high-income-child-benefit-charge

Yes I imagine we'll fail but I'll try in any case. We would decline any child benefit in any case, just want it registered for the NI contributions so worth a try I guess.

Has your wife run her own state pension forecast?  As people who need to buy extra years are currently paying £800ish for each year it’s worth having a plan I think.

Zerforax

Sarahspangles said:

Has your wife run her own state pension forecast?  As people who need to buy extra years are currently paying £800ish for each year it’s worth having a plan I think.

That's the plan this week (currently we're busy with a sick child!). She has the Govt Gateway set up so we need to log in and run the numbers.

Yes, will be unfortunate if we have to buy 7 years worth due to my mistake on the child benefits!

Zerforax

The government also wants to address the fact that some parents who have not claimed Child Benefit could miss out on building their state pension. Those affected will in future be able to claim National Insurance credit retrospectively as ministers move to tackle this issue.

When parents claim Child Benefit, they can also receive a National Insurance credit which helps them build their state pension. This is aimed at those who, due to caring responsibilities, are out of work or not earning enough to pay National Insurance, to ensure they are still able to do that.

The Government wants to ensure that parents who have not claimed Child Benefit are not disadvantaged when they start claiming their State Pension and is announcing a resolution for affected parents.

Parents do not need to take any action immediately. The government intends to legislate to allow eligible individuals to retrospectively claim National Insurance credit, and the next steps to be taken will be published in due course.

https://www.gov.uk/government/news/savers-set-to-benefit-from-simpler-tax-system

Great news for us personally. My wife currently has 9 years contribution and this change means she won't lose out on the last 7 years. Our youngest is 3 so she should also collect the next 9 years either way (whether works or child under 12 contribution).

So that should get her to at least 25 years contribution by the time she is 45. It may be a tad higher as she did work before the changes in 2016 so may get a bit more qualification but the government gateway doesnt currently show the calculation as she's at 9 years.

So then we go back to the question of whether we should buy some years before the July deadline. She wants to go back to work soon so I feel like she would manage the work 10 years in the 23 years before state retirement kicks in? The only reason I slightly hesitate is because she can buy years prior to 2010 at £729, £729 and £525 so just under ~£2k for 3 years..

Sarahspangles

So she has 9 years contributions, will add a further 7 when her National Insurance Credit contributions are added and will collect Credit for 9 years going forward from here (working or not)?  Was she contracted out for the initial 9 years, which must be pre 2016?  I think that might mean they don’t add up to 9 years of ‘new’ pension.  Although she’s got lots of time to contribute it’s a nice feeling having complete years under the belt.