Pensions - Articles - Reducing pensions gender gap


In its package of tax simplification measures the government has recognised 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 is to address this issue by enabling affected parents to receive a National Insurance credit retrospectively, with details to follow.

 Steven Cameron, Pensions Director at Aegon said: “It’s great news that eligible parents who didn’t claim child benefit will be able to claim state pension credits retrospectively. If a parent is eligible for child benefit, but they or their partner has an income of over £50,000, special tax charges can cancel out the child benefit payments. This leads to some not bothering to claim, but there’s another key benefit in claiming which many people are not aware of. Registering for child benefit entitles a parent to National Insurance credits which count towards their future state pension. To qualify for the full state pension, you need 35 years of NI credits. Taking a break from employment, but not claiming child benefit, could leave a parent short of the 35 years and mean their state pension is reduced. In future, subject to final rules, those who finds themselves in this position will be able to put in a retrospective claim. As it’s more often women who take career gaps to care for children, this measure is a helpful step towards reducing the gender pensions gap.”

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

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.