Money expert Martin Lewis has sounded a warning for individuals to check one simple detail – a move that could significantly boost their pensions by a substantial £10,000. The finance whiz emphasized that those aged between 40 and 73 should be on high alert.
He pointed out the urgency of the matter with the April 5 deadline looming when the "door shuts forever." Mr Lewis highlighted: "Pls share. If someone hasn't checked this yet and is between the age of 40 and 73. Without exaggeration it could be worth £10,000s, so check. If you miss it now the door shuts forever on 5 April."
Last year on his ITV programme, Mr Lewis revealed that about 200,000 individuals got their child benefit claims wrong, resulting in missed National Insurance contributions, potentially diminishing their future state pension.
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The story took a positive turn when, on the same show, pensioner Gabriel shared how he turned his fortune around by an incredible £32,000 after taking heed of Lewis's expert advice. Gabriel came across a major oversight in child benefit claims which had impacted his National Insurance credits, thereby affecting his pension, reports Leicestershire Live.
Jeanette Kwakye, co-hosting alongside Lewis, conveyed Gabriel's testimony, saying: "Gabriel's been in touch. After watching your show about pensions, I realised I have about 14 years of shortfall. I asked for my wife's child benefit, national insurance credits to be transferred to my name, and I received 11 years of credit increasing my pension by over 60 pounds a week."
Gabriel stated: "If I live 10 years after pension age, I'll get an extra £32,000. So thank you so much."
Mr Lewis chimed in, revealing the potential for even greater financial gain should Gabriel live longer: " Of course, typical life expectancy once you take your pension is double that, so it could be 60 grand".
He then shed light on a wider problem, saying: "There are, I believe, 200,000 people in the country who had the wrong parent claim child benefit. Because what happens is if you're working, you get national insurance credits that go towards your pension. And if you're looking after a child, you also get national insurance pen credits.
"But if you have one working parent and one non-working parent, and the working parent is the one who claims child benefit, then they're already getting it from working. So they don't need it from childcare. And the other one isn't getting so that transfer will be that he was earning less than the threshold to get national insurance credits. She was earning over it. He should have been claiming he wasn't so they've transferred it. £32,000. 200,000 people in that situation. It's worth looking at that. That is brilliant."
Child Benefit claims enable a person who has stopped working to look after children to accrue necessary national insurance (NI) credits for the full state pension. However, if Child Benefit is claimed by the higher earner instead of the low earner in a household, the latter may lose out on a considerable amount of their state pension.
The Money Saving Expert website advises: "If you (or your partner) are not working, or earning less than £123 a week, claiming Child Benefit lets you earn NI credits you wouldn't otherwise have earned. So it's crucial you apply, even if one partner's income means you'll have to pay back some or all of the Child Benefit payment. New Child Benefit claims can currently only be backdated by three months, so apply ASAP."
HMRC has highlighted that around 200,000 parents could be missing out on valuable credits because it’s often the partner with a higher income who is the named individual for Child Benefit. It’s essential for those eligible to apply for National Insurance credits if you're a parent or carer.
Should you or your partner be registered for Child Benefit, it's possible to apply for any missing credits in your National Insurance record and to even transfer credits between spouses or partners.
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