Grandparents could boost their pension if looking after a grandchild to allow the parent to return to work.
Applying for a national insurance credit could result in a further £230 annually for a grandparent who looks after to their grandchild, which, according to Royal London, would amount to £4,500 over a usual retirement lasting two decades.
Whilst the ‘Specified Adult Childcare Credit’ is not just reserved for grandparents as other family members can apply, it is essential that they under the state pension age if they are to claim.
Though the number of people claiming has grown over the past year, there could still be thousands missing out according to Royal London, who state that just a tenth of those who could benefit actually apply.
Commenting on the purpose of the credit and the potential number of eligible people who are yet to apply was Steve Webb. The Director of Policy at Royal London stated: ‘It is right and proper that when grandparents sacrifice their own working life to help a family member get back to work, they should not also damage their own state pension prospects.
He adds: ‘This national insurance credit is a valuable right and it is good news that the numbers claiming have risen so dramatically in such a short space of time. But we believe that there are tens of thousands more grandparents who could be entitled to benefit and would encourage more of them to find out about the scheme and to make a claim.’
Further details on how to claim for the credit can be accessed here.
