State Pensioners with families can boost their pension pot by up to £6,000 by making one simple check.
Pensioners who take care of their grandchildren while their parents are working can claim a financial reward from the government which can increase the amount they get in their State Pension.
If you look after a child aged 12 and under you may be entitled to claim Specified Adult Childcare Credits. These credits work by transferring the weekly National Insurance credit a parent or carer gets to an eligible family member, such as retired grandparents.
The credits can help to stop gaps in your National Insurance record, with credits awarded for each week or part week you provided care for a child.
National Insurance credits are important as you need at least 10 years’ worth in order to qualify for the State Pension, and 35 years’ worth to get the full amount.
The full rate of the new State Pension is currently £221.20 per week, but the amount you get may be different depending on the number of National Insurance qualifying years you have, if you were contracted out before 2016, or if you paid into the Additional State Pension before 2016.
Each qualifying year after April 6, 2016 added to your National Insurance record increases your State Pension amount up to the full rate of £221.20 per week.
According to wealth management company Quilter, these credits could boost some people’s State Pensions by around £6,000 over the course of a typical retirement, which is about 20 years.
You can apply for the credits providing:
you are an eligible family member, who provided care for a child aged under 12
you were aged 16 years and over, but under State Pension age, when you provided care for the child
you are ordinarily resident in the UK, but not the Channel Islands or the Isle of Man
the child’s parent or main carer has claimed Child Benefit, but does not need the credits themselves
the child’s parent or main carer agrees to your application
The child’s parent or main carer must then countersign the form to confirm they agree that, for the period stated, you provided care for their child and can have the credits.
You must wait until October 31 after the end of the tax year you want to apply for. This is because the government needs to check if the parent or main carer already has a qualifying year for National Insurance purposes.
Applications can be made online via GOV.UK.
