Pension: Pension Age and Pension Records

pension: Webb makes the claim in a new report published by mutual insurer Royal London, which concludes that urgent action needs to be taken to deal with this problem before a whole generation of women reach pension age with incomplete pension records . This is a sensitive area for the government because of an ongoing row about thousands of women born in the 1950s who say that controversial changes to the state pension age have left them facing financial hardship, according to The Guardian. The new claims relate to rules introduced in 2013 which mean that families where one parent earns more than 60,000 a year are hit with a tax charge which wipes out their entire child benefit payment. Steve Webb, ex-pensions minister, said the women, currently totalling around 50,000 but with the number rising every year, may have lost out on more than half a billion pounds in state pension rights over the past three years as a result of a wider clampdown on entitlement to child benefit. The rules, known as the high income child benefit charge, also affect people earning 50,000-plus, because once you hit this level of income child benefit is gradually clawed back until you receive nothing at 60,000. Many people have opted to give up the benefit so they don t have to pay the extra tax. Those in this position can choose to carry on receiving their child benefit, but if they do they have to pay extra tax, which will cancel out some or all of the money they get. (news.financializer.com). As reported in the news.