A woman was told she doesn't qualify for any State Pension at the age of 66.
You’ll usually need at least 10 qualifying years on your National Insurance record to get any State Pension, and 35 years to receive the full amount. However, some realise this too late as one woman found out upon reaching state pension age when she received a letter stating she is not entitled to the benefit.
On the Reddit forum r/UKpersonalfinance, one user TheEggyBreadMonster shared his mother’s plight seeking advice. The post read: "My mum has recently reached state pension age.
"However she received a letter saying she isn't entitled to one. What seems to have happened is, she raised five children but the child benefit for all of us was in my dad's name.
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"So she didn't get the NI credit for raising five children. My dad has been employed and self employed his whole life, and been paying all his NI contributions - from employment and self employment.
"His NI record shows him paying all relevant NI, and he has the NI stamps from post office to prove it."
The post continued: "I have been told I can write a letter in case I don't agree with this decision. Is there anything I can write in there to change their minds?
The child benefit the social media user mentions allows stay-at-home parents to claim National Insurance credits whilst raising their children. If they are registered for child benefit for a child under 12, even if they do not receive monetary compensation from the benefit, will go towards the NI record needed to claim state pension, the Express reports.
The user tried to have the NI credits transferred from their dad to their mum, but unfortunately were only able to get nine years’ worth transferred.
The post continued: “I have been told I can write a letter in case I don't agree with this decision. Is there anything I can write in there to change their minds?
“My parents are immigrants, so would have had no idea the consequences of my dad having the child benefit in his name. And the benefits office doesn't tell anyone either.
“Back then there was no internet so they wouldn't have been able to easily research this kind of thing.”
Independent financial advisor, Rebecca Robertson, said “so many people” are in similar situations where they reach retirement age and find they have no funding to support themselves. She said: “So many people haven’t made extra provision for retirement and are reliant on state pension that barely covers their bills.”
Ms Robertson advised those wanting to avoid this sort of situation should: “Obtain state pension forecast to see exactly what’s happened each year, don’t assume they’ve got the records correct.”
Additionally she highlighted voluntary National Insurance, which allows people to essentially purchase a qualifying year to make up for gaps in their record. Although Ms Robertson noted: “I appreciate ‘find the money’ is easier said than done."
Ms Robertson also recommended that people "investigate Pension Credit” which is one of the most under-claimed state benefits. Pension Credit is specifically targeted to those living retirement on a low income and allows them to top up their state pension.
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