Pension Advice (Missing Years)

all4one

I'll try to be brief.

First thing is my wife had a baby 2013, and we claimed Chiuld Benefit for a few years before my wage went over the limit and I stopped claiming, I read though that she should be able to claim these years as missing as she was out of work looking after baby (I then read we could backdate a claim for only 3 months.) This is where I'm confused will we ever be able to claim thoses years as not missing on her state pension, it seems a bit silly if not as for example we got divorces she would be missing out due to me ?

Also, she is 49yo and has about 4 years worth of state pension (due to her not being born in this country), we can buy back 2 years for £1800 - is this worth it if she works say another 4 years to make the 10 years need to qualify for state pension ?

I hope above is clear.

molerat

Next year there should be a scheme coming in to claim NI credits back to 2013 for those that did not claim due to HICBC.  She needs to concentrate on what to do for the years going forward as she would not be eligible for credits from the child's 12th birthday.

all4one

Where can I find details of the proposed scheme please ? Or is it just rumour ?

molerat

https://community.hmrc.gov.uk/customerforums/ni/7b4cfbd6-9fe7-ed11-913a-00155d978126

https://www.gov.uk/government/publications/tax-administration-and-maintenance-summary-spring-2023/summary-of-tax-administration-and-maintenance-spring-2023

National Insurance credit changes

The government recognises concerns that some eligible parents who have not claimed Child Benefit could miss out on their future entitlement to a full State Pension. The government will address this issue to enable affected parents to receive a National Insurance credit retrospectively. Further details of next steps will be set out in due course.

https://www.gov.uk/government/publications/tax-simplification-update-january-2024/tax-simplification-update-january-2024

Amending the parents’ National Insurance Credit (Child Benefit)

As announced on 27 April 2023, the government will legislate to introduce a route for people to apply for National Insurance Credits for parents and carers for tax years where they have not claimed Child Benefit, to ensure that people do not miss out on their State Pension entitlement. The credit will add qualifying years of National Insurance where eligible which will support future State Pension eligibility.

Individuals will be able to claim this Credit from April 2026. The eligibility for the Credit will be closely based on Child Benefit eligibility criteria. Transitional arrangements will ensure those affected since 2013 are still able to claim.

Going forward, applications will be available for 6 years following the relevant tax year. The government will bring forward secondary legislation as soon as possible.

All proposed under the previous government and I don't think anything has been mentioned by the current government.