State pension warning over national insurance loophole that could see you miss out on cash in retirement


One loophole could cause millions of women to be deprived of state pension cash – but there is a way to get the money back.

A 66-year-old woman was told she would miss out on her National Insurance (NI) credit pension,


A loophole could deprive eligible women of state pension moneycredit: Alamy

You can get NI credit for your state pension if you are on a child BenefitBut the woman missed it because her husband was getting it, Reddit user TheEggyBreadMonster explained.

you get kids benefits If your child is under 12 years old.

and until the child Benefit You get a full year for your state pension—but if not, this simple mistake could mean you missed out on cash in retirement.

Steve Webb, former pension minister and now partner at the LCP, said he faced issues like this “frequently”.

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“Sometimes a husband has settled all the paperwork, or perhaps he felt he was doing the new mother a favor by filling out a child benefit form when the child was first born.”

However, the good news is that you can claim that the NI credit is transferred from your spouse’s name to yours.

This applies to those who have reached pension age after 2008.

To get the credit back, all you need to do is fill out a CF411 Form and send it to HMRC.

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

You need to make a substantial NI contribution to qualify for state pension payments.

People in the UK need to have at least 10 qualifying years on their NI record to receive a proportionate state pension and 35 years to claim the full amount.

But many women find themselves in a situation where they do not qualify as they take time off from career breaks or maternity leave.

Sun reported earlier A case Where a woman checked her state pension forecast to find only two of the nine years she was eligible for her state pension.

According to government data, Solape Altis was one of 40 lakh people who missed a state pension qualifying year in the tax year 2018-19.

But it’s not the only payment that many contiguous states have. pension Age could potentially be missed.

Just this week, money-saving experts Martin Lewis all 66. urged to or more to check if they are eligible for additional assistance of £3,300 per year.

Many retirees don’t realize that they may be in line for additional help to increase their pension.

Who is eligible for National Insurance Credit?

You can get the National Insurance Credit if the following are applicable:

  • You are on job seekers allowance and not in education or working 16 hours or more a week or you are unemployed and looking for work but not on job seekers allowance
  • you are sick, disabled or on sick pay
  • you are on maternity, paternity or adoption pay
  • You are a parent who has registered for child benefits for a child under the age of 12, you wish to transfer credit from your spouse or you are a foster caregiver
  • You are a carer on a carer’s allowance, on income support and providing regular and adequate care or you are caring for one or more sick or disabled person at least 20 hours a week
  • You are a family member who is above 16 years of age but below the state pension age and you are 12. caring for a child under the age of
  • You are on the Working Tax Credit or Universal Credit
  • you are on a training course or jury service
  • your partner is in the armed forces
  • you have been wrongly imprisoned

How can I check that I have not left any National Insurance contribution?

You can see how many years you have made NI payments and check for any missing years official website,

You will need to create a Government Gateway account online to be able to check it though.

you can also request a statement online, on the phone or by post, but by writing to: Office of National Insurance Contributions and Employers, 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 can I claim the National Insurance Credit for the gap?

you can see A complete list of who is eligible to claim the credit on the government website.

It explains the circumstances where you will need to make a claim and when you will receive it automatically.

You must either apply online or contact your local job center to receive the credit.

You can do this again by checking government website,

If you are not entitled to NI credit for one year, you can also pay to fill the gap by making a voluntary contribution,

You can do this before and once you reach the state pension age.

Most people will do this by purchasing what is known as a Class 3 National Insurance Credit to fill in the gaps in their records at a cost of £15.85 per week for the 2022/23 fiscal year.

So to get the full year’s value, and you would pay £824.20.

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

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

If you are self-employed and are buying Class 2 contributions, the rules for how much you pay are also slightly different.

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