Millions of retirees are living on a limited income and this can be tough amid a cost of living crisis. However, there are five key ways Britons could boost their income in later life that many may want to consider.
Pension Credit
Pension Credit is designed to assist people over state pension age who are on a low income with their day-to-day costs.
The benefit functions as a top-up to provide a boost to those who may be struggling.
It tops up weekly income to £182.60 for single people, and £278.70 for those in a couple.
READ MORE: One in four could lose state pension under think tank suggestion
Voluntary National Insurance
Some people could have gaps in their National Insurance (NI) for numerous reasons, but these gaps could mean they might not get the full state pension.
As a result, some may be able to pay voluntary contributions to fill any gaps if they are eligible.
Currently, the rates for voluntary contributions are:
- £3.15 per week for Class 2
- £15.85 per week for Class 3.
However, people should be aware voluntary contributions do not always increase the state pension.
As a result, people should contact either the Future Pension Centre or the Pension Service to find out more.
The DWP adds: “You may also want to get financial advice before you decide to make voluntary contributions.”
Specified Adult Childcare Credit
Those who are under state pension age and looking after a family member under the age of 12, such as a grandchild, could see their state pension benefit.
The system works by transferring the NI credit attached to Child Benefit from the Child Benefit recipient to the family member who is caring for the child.
This could be suitable, for instance, if a parent is returning to work and getting their own NI contributions.
The NI credits could help people to boost their own record, and the state pension as a result.
Child Benefit
In a similar way, claiming Child Benefit can be a good way to ensure a person doesn’t miss out on valuable state pension credits themselves.
Women can often miss out on NI when taking time off to look after children, so Child Benefit can help.
Some women have even missed out because their husband or partner claimed the Child Benefit rather than themselves.
Those who claim Child Benefit in their name will get the National Insurance credit to go towards the state pension.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
