State pensioners may be able to increase their annual payments by up to £3,600.
Grandparents, aunties and uncles have been encouraged to see if they can get National Insurance credit through Child Benefit.
Since 2011, family members other than parents who are looking after children can receive credits towards their National Insurance contributions.
A person eligible for the credits from the 2011-12 tax year up to the previous year could receive an extra £3,600 in state pension payments.
The way this works is that a parent claiming Child Benefit can transfer any unused National Insurance credits – such as if they are paying National Insurance through work – to someone else who is helping to care for their child.
These people can claim the support:
- A mother or father who does not live with the child
- Grandparent, great-grandfather or great-grandfather
- Brother, sister, half-brother, step-sister, step-brother, step-sister
- Aunt or uncle.
The support can be claimed regardless of how many hours the child was cared for and during the COVID-19 pandemic, the rules were changed so that even remote care qualifies.
If a grandparent has looked after a child for a year, they can get an extra year towards their state pension, which is worth 1/35 of the new full state pension, which is currently £203.85 a week.
The state pension is set to rise by a significant 8.5 per cent next year and some experts are wondering whether the triple lock will be viable in the coming years.
Research by Hargreaves Lansdown has found that almost one in five Britons believe the state pension will no longer exist when they retire.
Helen Morrissey, the group’s head of retirement analysis, said: “Not surprisingly, all this change means there is a perception, particularly among young people, that the state pension is under threat.
“Given its importance as the basis on which we build the rest of our pension planning, we need to see real long-term thought in this area with a comprehensive review to ensure it remains sustainable in the long term and allows people to retirement planning with. trust.”
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