Grandparents could be missing out on a £53,500 top up to their state pension if they regularly look after their grandkids.
This is because mums and dads might be unaware that they can transfer over National Insurance contributions to their elderly relatives.
The state pension you receive in retirement is dependent on how many NI credits you’ve built up over your working life.
You need at least ten years' worth of NI contributions to qualify for any sort of state pension, and at least 35 years' to get the full amount, which is currently £179.60.
If an elderly relative doesn’t get the full amount, and spends a lot of time looking after grandchildren under the age of 12, it is possible to top up their state pension by allowing them to claim "Specified Adult Childcare Credits".
This is where working parents sign over their child benefit NI credit to someone else.
But a quick word of caution - mums and dads should only do this if they're in work or earning credits another way themselves.
According to investments and savings firm Hargreaves Lansdown, grandparents risk missing out on more than £53,500 over the course of a 20-year retirement by not transferring NI credits.
This works out at £2,675 in missing money each year.
These figures are based on a grandparent who has 25 years of contributions and looked after grandchildren for ten years, but didn’t claim.
This means they would miss the chance to boost their pension from around £128 to £179.60 a week - multiply this over the 20 years, and it could mean missing out on more than £53,500.
Of course, it does depend on if they’re not already getting the full state pension, and their individual circumstances.
Sarah Coles, personal finance analyst at Hargreaves Lansdown, told The Sun : "If you don’t have enough, then your years caring as a grandparent can make an enormous difference."
How to apply for 'Specified Adult Childcare Credits'
You can apply for “Specified Adult Childcare Credits” by using form CA9176 on the Gov.uk website.
Both you and the parent transferring the credit will need to sign the form, so you must be in agreement that you're happy to go ahead with the transfer.
You should also be aware that only one grandparent or family member can receive the credit - and the credit is per child benefit claimant, not per child.
Finally, the credits can be backdated to April 6, 2011, which is when the scheme came into effect.
