State Pension BOOST: How you could be missing £2.6K – who can claim
State pension ‘not enough’ to retire on says financial advisor
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State Pensions are claimed by those who reach the Government mandated age, and have the qualifying National Insurance years. While there have been pushes for Chancellor Rishi Sunak to stop the Triple Lock Scheme ahead of an unprecedented rise next year – some Brits may be able to give their pensions a boost.
State Pensions are a Government-issued benefit given to those who qualify once they reach State Pension age.
There are a number of other stipulations for claiming State Pension, including your National Insurance record.
Claimants must have at least 10 qualifying years on their National Insurance record to receive any State Pension.
The actual amount you get depends on the number of years on your National Insurance record.
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During those 10 or more years one of the following must have applied
- you were working and paid National Insurance contributions
- you were getting National Insurance credits for example if you were unemployed, ill or a parent or carer
- you were paying voluntary National Insurance contributions
The full new State Pension is £179.60 per week, and needs to be claimed – it won’t be given automatically.
You’ll be able to claim the new State Pension if you’re:
- a man born on or after 6 April 1951
- a woman born on or after 6 April 1953
However, one key stipulation could see claimants eligible for a boost to their payments.
For grandparents who look after their grandchildren, they could claim credits that could contribute to their pension pot.
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So if you care for a child, you can claim Specified Adult Childcare Credits and this counts toward your National Insurance contributions.
Investments and savings firm Hargreaves Lansdown said those not claiming could lose more than £53,500 during a retirement spanning 20 years.
This works out to a staggering £2,675 per year.
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.”
So if you have National Insurance contributions which span 30 years, and have cared for a child for five years, claiming the credits could push your State Pension claim to the full 35 years.
So who is eligible?
Parents need to be claiming child benefits for the child in question.
If they do so and are out of work, they will be rewarded State Pension credits.
Should the parent return to work, and the grandparent look after the child the credits can then be granted to the grandparent instead.
The parent needs to be claiming child benefit, however, so if this is not claimed for the credits cannot be granted to the grandparent.
Another stipulation is that only one grandparent can be granted the benefit, so if two care for the child one must be chosen to have the Specified Adult Childcare credits signed over to them.
To have the credits granted to a grandparent, an online form needs to be filled in via the Government’s website.
And if you’re kicking yourself about only learning of this now, don’t fret – you can add credits dating back to April 6, 2011 – as long as you were State Pension age at that time.
For more information on Specified Adult Childcare credits, you can visit the Government’s website here.
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