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Early Retirees in the Sandwich Generation Risk Missing Out on Carer’s Credit

ended 22. July 2025

Many early retirees in the so-called “sandwich generation” — juggling support for both elderly parents and grown-up children — may be unknowingly missing out on valuable State Pension credits.

Carer’s Credit is a little-known National Insurance credit designed for those providing at least 20 hours of unpaid care a week. It helps fill gaps in National Insurance records, protecting individuals’ entitlement to the full State Pension.

However, financial planners warn that early retirees, especially those stepping back from work in their 50s to care for ageing relatives, may assume they're not eligible for any state support — and are failing to claim.

“We’re increasingly seeing early retirees ending up having to care for their parents rather than enjoying their retirement, but they don’t realise they could be entitled to Carer’s Credit. It’s a hidden benefit that could significantly boost their future State Pension, yet many miss out simply because they’ve never heard of it.”
— Scott Gallacher, Chartered Financial Planner at Rowley Turton
“This is a silent issue. Unlike Carer’s Allowance, Carer’s Credit doesn’t pay you money now, but it could boost your future State Pension by thousands. It’s free to claim — but often completely overlooked.”

To qualify, the person being cared for must receive a qualifying disability benefit, such as Attendance Allowance or the daily living component of Personal Independence Payment (PIP). If not, carers can still apply with a supporting statement from a health or social care professional.

Experts are urging those in the sandwich generation — particularly women, who make up the majority of informal carers — to check their entitlement, especially if they’ve left work early and aren’t receiving other credits (such as for child benefit).

The application is straightforward and can be backdated to cover previous tax years.

Further info: www.gov.uk/carers-credit

We’d love to hear from fellow IFAs:
Are your early retiree clients aware of Carer’s Credit? Do you factor this into your advice process? Share your experience and insights.

 

1 responses from the Newspage community

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Editor
Scott Gallacher
Director at Rowley Turton
Tax and National Insurance is a complex area, and the government is letting down the unsung heroes who provide unpaid care every day by not doing more to raise awareness of Carer’s Credit.

These carers—often early retirees juggling family responsibilities—are missing out on vital National Insurance credits that could significantly impact their future State Pension. They deserve better recognition and support.