News Grandparents missing out on Pensions perk

Grandparents missing out on Pensions perk

State pension advice in newcastle under lyme

Grandparents missing out on Pensions perk

The Government launched the adult childcare credits in 2011 however it seems that not many people are aware of this State Pension boosting perk.

Do you look after grandchildren with working parents and have a shortfall in your National Insurance contributions? If so, you are able to claim a year’s worth of NI credits for each tax year that you have looked after the child (under 12). There are no minimum hours required that the Grandparent must look after the child. The eligibility criteria are mere that the child’s parent is working and in receipt of Child Benefit. As Child Benefit offers a National Insurance credit, if the parent is working they do not require the additional credit and therefore this can be transferred to a Grandparent.

Here is an example of how this can improve your State Pension:-

Denise is 63 and retired at 60. We checked her State pension forecast on the Government website and her forecast stated that she needs another 2 years worth of NI contributions in order to be eligible for the full State pension of £169 a week (19/20). Denise’s current pension amount was £161 a week. As she is retired unless she made voluntary contributions of over £1500, she would lose out on £8 a week.

Denise looks after her Granddaughter for a couple of days a week and her parents are working, therefore, we were able to transfer the National Insurance credits over to Denise using a simple form. Because Denise has looked after the Grandchild for over 2 years, this has secured her the extra 2 years National Insurance contributions required in order to get the full State Pension entitlement. She will now receive £169 a week and by filling in a simple form, she has been able to secure an extra £416 a year in inflation-linked income!

If you need pension advice please get in touch today to speak to one of our financial advisers.


Giliker Flynn Independent Wealth
2 Gower Street
Newcastle under Lyme
01782 840590