Millions of households are being urged to claim Carer’s credit by the Department for Work and Pensions (DWP) to potentially boost their state pension by up to £328 per year. This initiative is particularly targeted at unpaid carers who may not be eligible for a full state pension due to not earning enough to make National Insurance contributions. In order to receive the full state pension of £221 weekly, individuals must have a minimum of 10 years’ worth of NI contributions, with 35 years needed for the full amount.
Experts at Mobilise, a community for unpaid carers, are encouraging the UK’s 10 million carers to apply for ‘carer’s credit’ to ensure they have access to the full new state pension. Carer’s credit allows any years where national insurance was not paid due to caring responsibilities to still be counted towards the 35-year target. This is crucial as each missed credit could result in a reduction of your state pension value.
Suzanne Bourne, a care expert at Mobilise, highlighted the financial risks long-term carers face if they do not claim the carer’s credit. She emphasized the importance of checking eligibility and submitting applications promptly to avoid missing out on potential benefits.
It is essential to check your National Insurance record before applying for carer’s credit. The government provides tools such as the ‘Check your State Pension’ online tool and the HMRC app to help individuals assess their state pension forecast and identify any missing years or free credits that could be claimed. By filling in these gaps with free NI credits or voluntary contributions, individuals can increase their state pension amount significantly.
For individuals who do not qualify for free NI credits, voluntary contributions can be made to cover missing years. Although there is a cost associated with voluntary contributions, the long-term benefits in terms of increased weekly pension amounts and total returns over retirement can be substantial. It is advisable to calculate the potential returns before making any voluntary contributions to ensure it aligns with your financial goals.
If you are under the age of 73, you may be eligible to make voluntary pension contributions to enhance your state pension benefits. Checking your state pension forecast and consulting with the Future Pension Centre or the Pension Service can provide guidance on whether voluntary contributions would be advantageous for you.
Overall, claiming unclaimed benefits such as carer’s credit and making voluntary pension contributions can significantly boost your pension income in retirement. It is important to take proactive steps to secure your financial future by exploring all available options to maximize your state pension benefits.
