How a child benefit form can lose you state pension?

enOctober 05, 2018

This is Money Podcast

Podcast Summary

Importance of registering for child benefit despite financial ineligibility: Neglecting to register for child benefit can lead to missed state pension credits and significant financial losses for parents, even if they don't qualify for the benefit itself.
Neglecting to properly complete and submit paperwork related to child benefits and state pension can result in significant financial losses, particularly for parents. The controversial overhaul of child benefits in 2013 introduced a system where one parent earning over £60,000 would lose all child benefit, even if both parents earned above £50,000 combined. However, to receive state pension credits while caring for a child, parents were required to register for child benefit, even if they weren't entitled to the benefit itself. This led to a complex situation where many parents, unaware of the requirement, missed out on crucial state pension credits. The campaign launched by This Is Money urges the government to simplify the process and ensure that parents are adequately informed about the importance of registering for child benefit, even if they don't plan to claim it.
Child Benefit Forms: A Complex Process: Failing to transfer child benefit forms between parents can result in significant losses in state pension benefits. The government's current policy only allows for backdating by three months, making it crucial to stay informed and act promptly.
The process of handling child benefit forms and transferring them between parents can be a confusing and complicated process, leading to potential losses in state pension benefits. A recent case involved a couple who failed to transfer the child benefit form when the father stopped working, resulting in a potential loss of thousands of pounds in state pension. The government's current policy only allows for backdating of child benefit forms by three months, which can deter people from applying. The campaign launched by Tanya Jeffreys aims to simplify this process and make it easier for parents to navigate. The case also highlights the importance of understanding the implications of form filling and the potential consequences of not transferring benefits when necessary.
Complexities in National Insurance and child benefit issues: Unnecessary complexities in National Insurance and child benefit systems lead to mistakes, causing hardships for individuals. Simpler solutions, like automatic online registration or handing out forms at birth registration, could help prevent these errors.
The current system for handling National Insurance and child benefit issues involves unnecessary complexities and mistakes, leading to hardships for individuals. The discussion highlighted two specific instances: the removal of child benefit above a certain income threshold and the case of a couple who inadvertently missed the opt-in/opt-out process. Common sense and simpler solutions, such as automatic online registration or handing out forms at the time of birth registration, could help prevent these mistakes. The number of affected individuals is unclear, but the issue has gained attention from government officials, suggesting acknowledgement of the problem. The campaign calls for rectifying these mistakes and increasing awareness to prevent further instances.
Link between Child Benefit and State Pension: Check eligibility for Child Benefit and contact HMRC if missed out, as it could impact future state pension payments. Delaying pension receipt may lead to higher payouts, but consider individual circumstances before making a decision.
There is a link between claiming Child Benefit and receiving a full state pension in the future, but this connection is not clearly communicated by the government. Parents who may have missed out on Child Benefit and are now older should check their eligibility and contact HMRC to make any necessary adjustments. Delaying the receipt of a state pension can lead to higher payouts later, but this strategy may not be beneficial for everyone, particularly those on income-related benefits or those whose benefits could be clawed back due to the increased pension payments. Clearer communication from the government about these connections and potential consequences could help prevent financial losses for individuals.
Deferring state pension affects your payout and payment duration: Consider personal circumstances before deciding to defer state pension for a higher payout, but it means missing out for a longer time. Mortgage rates remain low, making it an excellent opportunity for buying or remortgaging.
The decision to defer your state pension depends on your personal circumstances, including your expected lifespan and current health. Deferring can result in a higher pension payout, but it also means missing out on payments for an extended period. Additionally, tax implications should be considered. On a separate note, current mortgage rates remain low, making it an opportune time for various types of buyers to secure a mortgage or remortgage. This trend is not limited to first-time buyers but also applies to those looking to expand their property portfolio through buy-to-let investments.
Growing concerns over economic factors affecting housing market: Despite low mortgage rates, uncertainty around Brexit and rising interest rates are deterring first-time buyers and homeowners with small deposits from applying for mortgages. Buy to let mortgage rates remain stable, emphasizing their appeal to investors. Record-low mortgage rates are crucial for those seeking to buy or remortgage due to low savings rates.
Despite mortgage rates being low and record-breaking for some time, there are growing concerns among first-time buyers and existing homeowners about the potential impact of economic factors like Brexit and rising interest rates on the housing market. This uncertainty has led to a decrease in the number of people applying for mortgages with small deposits. However, buy to let mortgage rates have remained relatively stable, which could indicate that this sector of the market remains attractive to investors. The low savings rates currently on offer further highlight the importance of record-low mortgage rates for those looking to buy a home or remortgage. Despite the ongoing discussions about record low mortgage rates, it remains to be seen when mortgage rates will start to rise. Overall, the interconnectedness of mortgage and savings rates, as well as economic uncertainty, is shaping the housing market landscape.
Record low mortgage rates leading to lower offers for new borrowers: Banks and building societies are lowering mortgage rates to attract new borrowers due to struggling to meet lending targets and a slowdown in certain property markets, particularly in London and commuter belt areas.
Despite record low mortgage rates, banks and building societies are struggling to meet their lending targets and are therefore offering lower mortgage rates to attract new borrowers, particularly in the buy-to-let market. This trend is driven by a slowdown in certain areas of the property market, such as London and the commuter belt, where larger mortgages are more common. Meanwhile, uncertainty around Brexit is creating opportunities for buyers to find good deals on houses and flats. Additionally, a website is offering affordable weekend breaks, including flights and accommodation, for as little as £57 per person, aiming to alleviate the stress and costs of traveling during this time.
Affordable city breaks with weekend.com: Weekend.com offers cheap weekend flights and 3-star hotels, saving money and providing flexible last-minute getaways. Ensure ATOL protection and pay by credit card for added security. Covers deals from UK airports and unconventional destinations, starting at £60.
There's a new travel website called weekend.com that offers affordable city breaks by bundling cheap weekend flights with 3-star hotels. This concept can help travelers save money and have flexible last-minute getaways. However, it's essential to ensure the travel package includes ATOL protection and to pay by credit card for added security. With increasing airline instability, having travel insurance coverage for airline collapses is becoming increasingly important. The website covers flights from various UK airports and offers deals for unconventional destinations, making it an excellent option for couples, stag dos, and hemp parties. The website's algorithm scours the internet for the best prices, allowing travelers to secure trips for as little as £60.
Exploring affordable travel destinations despite rising oil prices: Invest in travel insurance for added protection during holidays, find affordable accommodation and unique destinations on weekend.com, and explore cheap but worthwhile destinations like Bidgosch, Algarve, Poznan, Warsaw, Katowice, Sofia, Gdansk, and Marbella
Despite rising oil prices potentially damaging profit margins, it's important to invest in travel insurance for added protection during holidays. Travel insurance not only covers medical expenses but also baggage, lost and stolen items, and airline failure. A German-based website called weekend.com, run by a team of travel experts, can help find affordable accommodation and unique destinations, some of which are under £100 per person. These affordable destinations include Bidgosch in Poland, the Algarve in Portugal, Poznan in Western Poland, Warsaw also in Poland, and various other locations such as Katowice, Sofia, Gdansk, Marbella, and more. It's worth noting that these destinations will be cheap once you arrive, making your travel budget go further. Overall, it's a great time to explore new places without breaking the bank.
Exploring Europe's Affordable Holiday Destinations: Discover affordable gems in Europe like Malta, Toulouse, Budapest, Lesaic, Edinburgh, Stag do, Valencia, and Jersey. Recommended over Barcelona, look for budget-friendly accommodation, and have priceless experiences for under £100.
Europe offers numerous affordable holiday destinations that are worth exploring. The speaker shared his experiences of visiting Malta, Toulouse, Budapest, Lesaic, Edinburgh, Stag do, Valencia, and Jersey. He highly recommended these cities, with Budapest and Valencia standing out as better options than Barcelona. He also advised listeners to look for budget-friendly accommodation options, even in expensive places like Jersey. The speaker emphasized that the experience of traveling and discovering new places is priceless, and it's possible to have amazing holidays for under £100. If listeners have any questions or need help with money-related issues, they can reach out to the team at editor@thisismoney.co.uk. Listeners were also encouraged to rate the podcast on iTunes to help more people discover it. This is Money, in partnership with NS&I Premium Bonds, aims to provide listeners with valuable money-related information and resources.

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Read a transcript of this episode on FT.com

Hosted on Acast. See acast.com/privacy for more information.

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home buying strategies

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Brian Dean

Senior Mortgage Advisor

M 408.489.0952

D 831.600.4706

W TheBrianDeanTeam.com

E brian.dean@myccmortgage.com

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