stay at home mums and pension - anyone know the answer here.

[pepsi]

I worked for 14 years and am now a stay at home Mum with 2 children aged 6 and 4. Now, this is just an assumption, but if I stayed at home for the rest of their school life, that will be 20 years out of work, I think child benefit is paid until 18/or whilst in full time education, is this right?, I know you get credits years for your state pension for every year you receive child benefit and are at home and you need 39 yrs to quality for a full state pension, I shall be 5-7 years short on this figure. Can I make up the shortfall by paying in something myself and when do I do that. Also, If I were to go back to work early I assume that this wont change the loss of years. Hope Im not confusing people. Anyone know whats what here.

I'm in a similar position. You can make additional voluntary contributions , even now I think , to make up the shortfall but I thought the credit for sahm lasted less than 18 years and was only at a minimal level.

pepsi I got a letter from IR stating NI shortfall for pensions and an option to contribute to make it up
Ring your tax office they can tell you

You can also pay into a stakeholder pension up to a given limit, which non-employed people used not to be able to do. I think you should consider getting professional financial advice on this tbh.

yes pepsi you can i had a letter asking me if i wanted to contribute as i had a period that was not covered, however they gave me an idea if i retired at state pension age that my pension would be in todays money £84 a week

The Child Benefit 'credit' only covers you for kids up to the age of 6 (or it might be 7) - after that you are expected to fund your own pension.

www.thepensionservice.gov.uk/atoz/atozdetailed/homeres.asp

I think the Home Responsibilities Protection from Child Benefits lasts until they are 16

Yes, I certainly will call the relevant departments and get some advice of what I would have to pay and when. Im 37 now, does that make a difference on when you need to start paying. Although I hope that in time my dh's pension will support us, you can never see in to the future and I worry what would happen to me if for instance we separated or even worse.

Are there any SAHM out there actively paying into such schemes at the moment and if so, how much? once I have had a chance to get the correct advice I will post back.