Martin Lewis has explained to caregivers how they can take thousands on their retirement and potentially miss out on money.
The money-saving expert shared how caregivers can use loans to top up their pension with social security credits to fill in gaps in your social security record.
Caregiver credit is available when you look after someone for at least 20 hours a week. It matters because how much, if any, of the state pension you ultimately get depends on your social security record.
When asked by a reader while on the phone that morning, Martin replied, “If you supervise more than 20 hours a week and don’t work, you will receive credits as if you were working.
“When you retire, the state pension you receive increases.
“If you miss it, it could cost you tens of thousands of pounds over the years of your state pension.”
The supervisor’s credit differs from the supervisor’s credit, which applies to those who care for someone who uses certain services for at least 35 hours a week.
If you do, you can get £ 67.60 per week which is worth £ 3,515.20 per year.
You will automatically receive social security credits for every week that you receive care allowance. reports the sun.
The This Morning viewer asked Martin for help after being told that she would not receive the full state pension because she was not entitled to all of the loans when she was eligible.
She asked if she could backdate her entitlement to more social security loans to increase her pension.
Martin explained that you can typically only backdate a caregiver’s credit claim one tax year while the caregiver’s allowance can be backdated three months.
However, there are “exceptional circumstances” so it is still worth making a claim and explaining your situation.
You can also make a claim if the person you were caring for has since died or no longer needs care.
Martin added: “Carer’s credit is massively underutilized.
“If you know any supervisors out there, ask them, ‘Have you checked that you are eligible for the supervisors credit?'”
A spokesman for the Department of Labor and Pensions (DWP) said: “Not everyone who can get these loans does, but that doesn’t mean they are missing out. There are many ways people can get their social security records and therefore some may not need them.”