Grandparents could be missing out on over £2,000 a year on state pension boost

Grandparents could be missing out on over £2,000 a year on state pension boost

06/24/2021

Wondering if you're missing out on an annual boost on your state pension?

Grandparents in the UK could be missing out on £2,675 which equals to £53,500 over their whole retirement.

If you look after your grandchildren you can claim credits that'll contribute to your pension pot when you stop working.

These Brits can claim Specified Adult Childcare Credits that top up their National Insurance contributions.

And if you don't claim the credits, you could see thousands of pounds wiped off your state pension funds.

The amount you could miss out on depends on individual circumstances.

Investments and savings firm Hargreaves Lansdown says you could lost more than £53,500 over the course of a 20-year retirement.

That works out at £2,675 in missing money each year.

In order to qualify for state pension of £179.60 a week, you'll need to have 35 years' worth of National Insurance contributions.

And to get any state pension you'll need at least 10 years' of contributions.

Sarah Boles, personal finance analyst at Hargreaves Lansdown, said: "If you don't have enough, then your years caring as a grandparent can make an enormous difference."

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A grandparent with 25 years of contributions who looked after their grandkids for 10 years, but didn't claim, would miss the chance to boost their pension from around £128 to £179.60 a week.

Over 20 years this could mean missing out on more than £53,000.

Grandparents can claim credits for care provided over the phone or on video calls.

To claim Specified Adult Childcare credits you'll need to complete an online application form on GOV.UK.

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Here you'll need to provide your personal details, as well as information about the child and the periods of care you provided.

You will also need to input your details of the child's parent or the Child Benefit recipient.

Specified Adult Childcare credits can be awarded retrospectively to April 6, 2011, at the earliest.

But you must have been under the state pension age of 66 when you cared for the child.

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