This is due to the fact that the higher earner is the parent who is claiming Child Benefit payments.
In the majority of cases, the lower earner is a woman which means higher earners getting Child Benefit further increases the gender pension gap.
LCP estimates that if the lower earner stays at home until the child is four and misses out on four years of credits, this will cost that parent over £1,000 per year on their pension or over £20,000 through their retirement.
Steve Webb, a partner at LCP, outlined what HMRC needs to do to address this significant discrepancy in how parents are making contributions to their state pension.
Mr Webb said: “Many couples may not realise that simply having the Child Benefit in the name of the higher earner rather than the lower earner could cost them dearly.
“National Insurance credits are a vital way of protecting the retirement position of those who spend time caring for others.
FOLLOW US ON GOOGLE NEWS
Read original article here
The post Benefits warning: Parents on Child Benefit face missing out on thousands in State Pension | Personal Finance | Finance appeared first on Samachar Central.