State pension warning about a National Insurance loophole that could cost you money in retirement


MILLIONS of women could miss out on state pension money because of a loophole – but there is a way to get the money back.

A 66-year-old woman has been told she will not be eligible for National Insurance (NI) credits for her pension.

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Eligible women could miss out on state pension money due to loopholeCredit: Alamy

You can get NI credits for your state pension if you’re on Child Benefit, but the wife missed out because her husband was the one receiving it, Reddit user TheEggyBreadMonster explained.

You receive family allowances if your child is under 12 years old.

And as long as Child Benefit is in your name for the whole year, you get a full year’s worth of your state pension – but if not, this simple mistake could cost you money. retirement money.

Steve Webb, a former pensions minister and now a partner at LCP, said he encountered problems like this “quite often”.

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“Sometimes a husband has taken care of all the paperwork, or perhaps felt he was doing the new mother a favor by filling in child benefit forms when the baby was born.”

However, the good news is that you can request that NI credits be transferred from your husband’s name to yours.

This applies to people who reached retirement age after 2008.

To claim the credits, simply complete a Form CF411 and send it to HMRC.

They will check the records and should make the transfer, then your state pension can be recalculated.

You must make sufficient NI contributions to qualify for state pension payments.

Britons need at least 10 years of qualification on their NI record to receive part of the state pension and 35 years to claim the full amount.

But many women find themselves in a situation where they are not eligible because they are taking time off during a career break or maternity leave.

The Sun previously reported on a case where a woman checked her state pension forecast only to find that only two out of a possible nine years were eligible for her state pension.

Solape Alatise was one of four million people who missed out on a year of state pension eligibility in the 2018-19 tax year, according to government figures.

But that’s not the only payment that many people approaching retirement age could potentially miss.

Just this week, money-saving expert Martin Lewis urged everyone aged 66 or over to check if they qualify for extra help worth £3,300 a year.

Many retirees don’t realize that they could be online for extra help to increase their pension.

Who is eligible for National Insurance credits?

You can get National Insurance credits if the following conditions apply:

  • You are receiving Jobseeker’s Allowance and are not studying or working 16 hours or more per week or you are unemployed and looking for work but you are not receiving Jobseeker’s Allowance employment
  • You are sick, disabled or on sick leave
  • You receive a maternity, paternity or adoption allowance
  • You are a parent registered for family allowances for a child under 12, you wish to transfer credits from a spouse or you are a foster parent
  • You are a carer and receive care allowance, income allowance and provide regular and substantial care or you care for one or more sick or disabled people for at least 20 hours a week
  • You are a family member over the age of 16 but have not reached the legal retirement age and you are caring for a child under the age of 12
  • You benefit from the work tax credit or the universal credit
  • You are on an internship or on jury service
  • Your partner is in the armed forces
  • You have been wrongfully imprisoned

How can I check if I have forgotten any national insurance contributions?

You can see how many years of NI payments you have made and check for missing years on the government website.

You will, however, need to create an online government gateway account to be able to verify this.

You can also request a statement online, by telephone or by mail, but write to: National Insurance contributions and Employers Office, HM Revenue and Customs, BX9 1AN,

The closer you get to retirement, the more important it is to check how many years you have.

How do I claim National Insurance credits for deficiencies?

You can verify the full list of those eligible to claim credits on the government website.

It explains the circumstances under which you will have to claim and when you will get it automatically.

You will either need to apply online or contact your local Job Center to receive the credits.

You can start over by checking the government website.

If you don’t qualify for NI credits for a year, you can also pay to fill the gaps by making voluntary contributions,

You can do this before the legal retirement age and once you reach it.

Most people will do this by buying what are known as Class 3 National Insurance Credits to fill gaps in their record at a cost of £15.85 per week for the 2022/23 financial year.

So to get a full year’s worth you would pay £824.20.

This could increase your state pension by over £200 a year.

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But one important thing to note is that you can usually only pay for gaps in your NI record for the last six years.

The rules on how much you pay are also slightly different if you are self-employed and buying class 2 dues.

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