State Pension issues uncovered by Martin Lewis: Steps to rectify potential mistakes in your contributions
The UK government is being urged to compensate over 3.6 million British women due to errors in the handling of the State Pension Age Rise, with many potentially missing out on their full entitlements[1]. This issue primarily affects women between the ages of 41 and 90, with most being in their 60s and 70s[2].
Financial expert Martin Lewis has provided advice on how to ensure you receive the State Pension amount you're entitled to if you meet the criteria. The key to potential increased entitlements lies in the Home Responsibilities Protection (HRP), a system designed to credit National Insurance (NI) records automatically for parents and carers who were not earning NI contributions due to their caring responsibilities[1].
To be affected by the error, one must have taken time away from paid work to either look after a child or someone with a long-term disability or illness between 1978 and 2010. This period is crucial, as HRP was only applicable during this timeframe[1]. In addition to this criteria, one must have claimed Child Benefit or Income Support before May 2000[3].
To check your eligibility for HRP, visit the official UK government website and search for Home Responsibilities Protection. You will find a short online questionnaire to assess your eligibility[4]. If HM Revenue and Customs (HMRC) suspects you have missing HRP credits, you might receive a letter CA2490 informing you about your possible missing entitlements and how to claim[3].
If you find gaps in your NI record or eligible missing credits, you can apply to have these filled, potentially increasing your State Pension entitlement. Form CF411 is used to apply for National Insurance Home Responsibilities Protection if applying from abroad[5].
Martin Lewis, a financial journalist and expert, explained on This Morning that an alleged "error" could lead some people to miss out on their full State Pension without realizing it. If your State Pension forecast does not show a full pension upon retirement age, you should check for missing National Insurance years, especially if they coincide with time off work for childcare or long-term care[3].
It is essential to remember that this pension-related issue is more likely to affect women, but it is not exclusive to them. If you believe you are affected by this error, you should check your State Pension forecast on GOV.UK and take the necessary steps to ensure you receive the full State Pension you are entitled to given your home responsibilities during those years[1][3][4].
[1] UK Parliamentary and Health Service Ombudsman recommends financial compensation for 3.6 million British women: https://www.parliament.uk/business/news/2018/march/ombudsman-recommends-government-compensate-36m-women-for-state-pension-age-rise-errors/ [2] Martin Lewis: Millions could be missing out on their full State Pension: https://www.moneysavingexpert.com/retirement/state-pension-home-responsibilities-protection/ [3] How to check if you're eligible for Home Responsibilities Protection: https://www.gov.uk/home-responsibilities-protection [4] Age UK benefits calculator: https://www.ageuk.org.uk/information-advice/money-matters/benefits/benefits-calculator/ [5] Form CF411: Application for National Insurance credits for Home Responsibilities Protection: https://www.gov.uk/government/publications/form-cf411-application-for-national-insurance-credits-for-home-responsibilities-protection/apply-for-national-insurance-credits-for-home-responsibilities-protection-cf411
- To ensure you receive your full entitlement for the State Pension, check if you qualify for Home Responsibilities Protection, which can increase your pension if you have gaps in your National Insurance record due to home responsibilities, such as caring for a child or someone with a long-term disability or illness.
- If you are concerned about the impact of the State Pension Age Rise on your personal-finance and believe you may have missed out on your full entitlements due to home responsibilities between 1978 and 2010, visit the official UK government website and complete the Home Responsibilities Protection questionnaire to assess your eligibility.
- Apart from considering wellness and beauty routines for personal care, it's important to regularly review your personal-finance situation, especially in regards to your State Pension entitlement, to ensure you are receiving all the benefits to which you are entitled and maximizing your financial wellbeing in retirement.
