MSE News: New mums, act NOW to protect your state pension entitlement

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Legacy_user
Legacy_user Posts: 0 Newbie
in Pensions, annuities & retirement planning
Mothers are missing out on national insurance credits because they're failing to claim child benefit...
Read the full story:
'New mums, act NOW to protect your state pension entitlement or you could lose almost £5,000 every year'
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  • Kynthia
    Kynthia Posts: 5,668 Forumite
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    It's a shame the article doesn't mention the fact that despite someone's salary being £50-£60k their adjusted net income, the figure used to calculate whether a household qualifies for child benefit, might be less. There could be people not claiming who don't realise their pension contribution mean it would be worth claiming.
    Don't listen to me, I'm no expert!
  • nightsky224
    nightsky224 Posts: 901 Forumite
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    I had not been claiming child benefit because of how much my partner earns. I'm not clear if its worth doing as I am currently working and paying NI
    Recently married and loving it x
  • molerat
    molerat Posts: 31,868 Forumite
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    nightsky224 wrote: »
    I had not been claiming child benefit because of how much my partner earns. I'm not clear if its worth doing as I am currently working and paying NI
    For you no but if a pre retirement age relative is looking after the children then maybe.
  • Mannna
    Mannna Posts: 1 Newbie
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    I had my first child in 2010 and my second in 2013. I opted out of the child benefit for my first child (I think in 2014) as it was getting confusing on my tax return. And then never opted in for my second child. Does this mean I am effected or not as I did originally claim for my first child?
  • King_Of_Fools
    King_Of_Fools Posts: 1,592 Forumite
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    edited 17 November 2016 at 3:28PM
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    I have never really understood why people do not continue to claim child benefit and then pay it back via tax if one earns too much. This does not cost any more but you have had the benefit of the money for up to two years before you have had to repay it so you might have earned some interest on savings or saved some interest on loans.
  • wibbler
    wibbler Posts: 173 Forumite
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    edited 18 November 2016 at 3:01PM
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    I have a friend who earns over £50k, and whose wife earns between £30k and £35k. They have 1 child aged 14 months. I'm guessing they shouldn't be receiving child benefit? Is that right? And are they affected by this article's findings?
  • molerat
    molerat Posts: 31,868 Forumite
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    edited 18 November 2016 at 2:14PM
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    If both are paying NI through employment then this does not apply to either of them. It is if one of them is not working they need to apply for child benefit so that NI is credited to build up their SP entitlement. But if they have a pre SP age relative looking after the child then maybe they should apply so that the credits can be transferred to that relative.
  • Kynthia
    Kynthia Posts: 5,668 Forumite
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    wibbler wrote: »
    I have a friend who earns over £50k, and whose wife earns between £30k and £35k. They have 1 child aged 14 months. I'm guessing they shouldn't be receiving child benefit? Is that right? And are they affected by this article's findings?

    I think the child benefit only starts to be affected at £50k and any pension contributions, salary sacrifice schemes and gift aid would reduce this £50k to a lower adjusted net earnings figure. So it's likely they get full child benefit.
    Don't listen to me, I'm no expert!
  • ourproject
    ourproject Posts: 3 Newbie
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    Hi,

    Does each parent have to fill out the form in order for both parents to claim NI based on zero rate Child Benefit Claim or can one of the parent fill in one form and it sufficient for both parents to be 'registered'?

    Hope that makes sense
  • molerat
    molerat Posts: 31,868 Forumite
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    Only one parent can claim, usually the one who is not earning enough to pay NI to add to their pension entitlement. It follows that the other must be paying NI based on them earning in excess of £50K. If you wish to register purely so a relative to claim specified adult child care credits then it does not really matter who registers.
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