More than 120,000 grandparents have increased their state pension simply by looking after their grandchildren.
But many more could miss out on up to £6,000 in retirement if they don’t use a little-known trick to boost their weekly income, experts warn.
Specific credits for caring for adult children, commonly known as “grandparent credit”, can be claimed when a parent receiving child benefit pays National Insurance and is able to work because another family member is caring for a minor child 12 years old.
Pension increase: Specific adult childcare credits can be claimed if a parent receiving child benefits pays NI and can work because a relative cares for a child
This does not have to be full-time care, but could include, for example, dropping children off at school or covering during school holidays.
Anyone with gaps in their National Insurance record can claim these credits to help them qualify for the full state pension, which is worth £221.20 a week.
Only 123,138 people have successfully applied for credit in the last eight years, according to HM Revenue and Customs data obtained by wealth manager Quilter.
Only 22,701 people applied for the loan last year, although 76 percent of applications were granted successfully.
There is no minimum number of hours you must care for a child to qualify, but you must be below the state pension age, which is currently 66.
Applications can be backdated until April 6, 2011. Applications for the 2023/24 financial year cannot be submitted until after October 31.
John Greer, head of retirement policy at Quilter, says: “Even if it’s just one day a week, eligible grandparents should be able to claim.”
Visit gov.uk/guidance/apply-for-specified-adult-childcare-credits for more information.
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