As well as the new State Pension, this year has also seen the launch of a new National Insurance (NI) credit designed to help Armed Forces spouses and civil partners protect their future State Pension.
We want to make sure that the Armed Forces and their families receive fair treatment from the nation which they serve, as set out in the Armed Forces Covenant.
When members of the Armed Forces are posted overseas, their spouses or civil partners who accompany them can find it difficult to work and pay NI contributions. This can leave a gap in their NI record, and this in turn could affect the amount of State Pension they receive in the future. NI credits can help to reduce the impact of this by filling the gaps.
A new credit for postings since 1975
A Class 1 NI credit has already been available for spouses and civil partners accompanying a member of the Armed Forces on an overseas posting since 6 April 2010.
This new Class 3 NI credit enables those who have accompanied an overseas posting since 6 April 1975 to protect their State Pension.
This doesn’t replace the existing credit, which counts towards the State Pension and also some working age benefits. You can find out more about the difference between Class 1 and Class 3 NI credits on GOV.UK.
Who is eligible for the new credit?
Not all spouses or civil partners who have accompanied a member of the Armed Forces on an overseas posting will be eligible for the new credit.
You can find out whether you’re eligible to apply by looking at our guidance on GOV.UK.
This includes that you will need to:
- Reach State Pension age on or after 6 April 2016 (i.e. women born on or after 6 April 1953 or men born on or after 6 April 1951); and
- Be (or have been) married to, or in a civil partnership with, a member of the Armed Forces; and
- Have accompanied your spouse or civil partner on a posting outside the UK since 6 April 1975.
The State Pension is designed to provide a foundation for your retirement savings. You can now Check your State Pension online at www.tax.service.gov.uk/checkmystatepension.
Do you have a gap in your NI record?
It’s worth bearing in mind that even if you meet these criteria, you may not actually have a gap in your NI record (for example, if you were working and paying NI contributions or caring for a young child whilst abroad).
If you don’t have a gap in your NI record, the credit may not improve your State Pension.
You can check whether there are any gaps in your NI record using our new online tool, Check your State Pension.
How to find out more
To find out more about the new credit and how to apply, take a look at our guidance on GOV.UK.
There is no time limit for applying. However, if you apply after reaching State Pension age, any increased State Pension might not be paid for periods before the date you applied.