NI credits towards state pension when looking after grandchildren

This was started in 2011 I think. I'm very clued up on pensions and finance and I only found out purely by accident this year. When I rang the DWP to ask about this, the person answering the phone didn't know anything about it! I'm planning on claiming it as I'll be looking after my grandson three days a week whilst my daughter works. It's a very good thing but it's not widely known about.

Wow, that's a massive difference. I was contracted out only for around half of my 41 contributing years. I think I'd better query my forecast of £100.

The contracted out years do count but not for the full amount. I've always been contracted out but pension forecast is £139. It's so complicated!

I would have thought so too, chelseababy. But under the new system, none of your "contracted out" years count, as you paid slightly less into the state pension during that time. In my case this means that my pension forecast is only around £100 per week. Under the old system, contracted out years counted towards the basic state pension (just not to the state second pension, the SERPS element), so I would have been entitled to the full amount of around £115 per week.

There are transitional arrangements in place that mean I'll get the higher of the two amounts, but I have another four and a half years until I get my pension at 66, so I hope I can still boost it a little.

I'm not convinced that everyone is aware of this change. Many assume they will get the full £150 odd. I got my figures by requesting a pension forecast last year.

If you already have 41 years NI contributions, albeit some contracted out, I don't think you would gain anything as you only need 35 years. I could be wrong too!

Thank you for sharing this, I'd never heard of it before