Keeping up entitlement to your State Pension - National Insurance Credits for Parents

As a new mum, the last thing you are probably thinking about is your State Pension – that time seems such a very long way off!   But here’s something you probably weren’t aware of that may just be of interest.

The National Insurance (NI) you pay via your employer or as self employed, (among many other things) contributes to your entitlement to a State Pension when you retire. 

During your maternity leave, if you decide to stay at home and not go back to work, or if you earn below the threshold for paying NI when you go back to work, you will not be making any NI contributions.  Potentially you could have years of no contributions which would have a negative effect on the money you would be entitled to in your old age. 

Fear not!  There is a little known system in place to fill in the gaps where you may not be paying National Insurance. 

Known as “Credits for Parents” (formally “Home Responsibilities Protection”), the government ensures that NI contributions are credited to you account so that you hold your entitlement to a State Pension.

Better still, you don’t have to do a thing!  You are automatically enrolled onto the system when you start receiving Child Benefit.

For more information visit:

www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/DG_183802

Or phone:

Pension Service Helpline on 0845 606 0265

This week’s post was suggested by Emma Rosser AKA

www.facebook.com/home.php#!/DottyMayscrafts

Thank you, Emma!

        

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