Child benefit to fill state pension years

jojopop_2

Hi everyone,

I recently read in the MSE newsletter about the importance of claiming Child Benefit to ensure it counts towards the state pension. I have a few questions regarding this and would appreciate some guidance. (I'm unsure if this should be posted here, in the benefits section, or in child support, so please advise if it's better suited elsewhere.)

We have two children, the eldest being 5 years old. I have not claimed Child Benefit because my income exceeds the eligibility threshold. However, my wife is a stay-at-home mum with no income.

From what I understand, we should apply for Child Benefit in my wife's name and opt out of receiving the payments. This way, she can receive state pension credits for taking care of the children, and the children will get enrolled to receive their National Insurance numbers.

I have a couple of questions:

1. What happens to the past 5 years where we didn't claim Child Benefit? Is it possible to claim those years retroactively?
2. My wife does not plan to work in the foreseeable future. Is it beneficial to purchase the missing years to ensure she receives a full state pension at retirement age, and are there other ways to achieve a full state pension?

Thanks in advance for your help!

xylophone

Has your wife checked her state pension forecast?

https://www.gov.uk/check-state-pension

What exactly does it say at "estimate to 5/4/24"?

https://www.litrg.org.uk/tax-nic/income-tax/high-income-child-benefit-charge

Dazed_and_C0nfused

I have not claimed Child Benefit because my income exceeds the eligibility threshold.

There is no eligibility threshold for Child Benefit.

Some people with "High" income need to pay a tax charge based on the Child Benefit paid but it doesn't prevent it being paid on the first place.

1.  Not now no.  But it is likely to be at some future point.

2.  There are other options yes but a good starting point is for her to check her State Pension forecast and get a better understanding of exactly where she stands.

jojopop_2

Hi,

So we checked her state pension forecast and her records start from 2012 and it says "Year is not full" for every year since then and it says it will cost £824 to fill each year since then.

What exactly does it say at "estimate to 5/4/24"?

can't see where it says "estimate" but at the top of the pension summary page it says:

You can get your State Pension on 1 January 2054

Your forecast is £195.92 a week, £851.90 a month, £10,222.83 a year

Regarding eligibility: yes I meant in my situation we should opt not to receive payments.

Guess our next move should be to apply for child benefit in her name. Is that correct?

molerat

There will be 3 amounts on the forecast.  

The top one, which you have provided, is what can be reached going forward.  As this is not the full amount then past years need to be looked into.  Claiming for missed child benefit credits should be available from next April.

Next there will be the amount currently accrued up until April 2023 or 2024 which may not be there as it seems to currently be £0.

Then there will be the maximum that can be reached with filling past gaps.  

She will need at least 4 back years to reach the full amount as well as filling every year going forward. What month / year was the first child born ?

Yes getting registered for child benefit is the next priority step, on either a nil amount claim or for you to pay back the amount.  Their NI numbers will be issued in due course when they reach 16, it is not dependent on child benefit.

I assume as her record only started in 2012 she is not UK born.  Unusual to see a SP forecast with nil years contributions to date.  Does she have a contribution record from a different country ?

2childmum2

We were in the same situation and opted to take the money and then pay the tax 
We chose to do this in case something happened to my husband's job (or heaven forbid, my husband). I would then still have a small amount coming in, and wouldn't have to apply for it at that point.

Dazed_and_C0nfused

molerat said:

There will be 3 amounts on the forecast.  

The top one, which you have provided, is what can be reached going forward.  As this is not the full amount then past years need to be looked into.  Claiming for missed child benefit credits should be available from next April.

Next there will be the amount currently accrued up until April 2023 or 2024 which may not be there as it seems to currently be £0.

Then there will be the maximum that can be reached with filling past gaps.  

She will need at least 4 back years to reach the full amount as well as filling every year going forward. What month / year was the first child born ?

Yes getting registered for child benefit is the next priority step, on either a nil amount claim or for you to pay back the amount.  Their NI numbers will be issued in due course when they reach 16, it is not dependent on child benefit.

I assume as her record only started in 2012 she is not UK born.  Unusual to see a SP forecast with nil years contributions to date.  Does she have a contribution record from a different country ?

Apparently that's not quite right.

https://www.litrg.org.uk/tax-nic/national-insurance/national-insurance-numbers

molerat

Dazed_and_C0nfused said:

molerat said:

There will be 3 amounts on the forecast.  

The top one, which you have provided, is what can be reached going forward.  As this is not the full amount then past years need to be looked into.  Claiming for missed child benefit credits should be available from next April.

Next there will be the amount currently accrued up until April 2023 or 2024 which may not be there as it seems to currently be £0.

Then there will be the maximum that can be reached with filling past gaps.  

She will need at least 4 back years to reach the full amount as well as filling every year going forward. What month / year was the first child born ?

Yes getting registered for child benefit is the next priority step, on either a nil amount claim or for you to pay back the amount.  Their NI numbers will be issued in due course when they reach 16, it is not dependent on child benefit.

I assume as her record only started in 2012 she is not UK born.  Unusual to see a SP forecast with nil years contributions to date.  Does she have a contribution record from a different country ?

Apparently that's not quite right.

Every day is a school day.   I can see a problem building here then