PENSIONERS contribute more than £2 billion a year to the Scottish economy by performing childcare duties and voluntary work.

A new report says retired Scots regularly contribute to the public purse, but often feel undervalued and poorly respected by society.

The findings show pensioners spend an average of 4.2 hours a week looking after grand- children or other family members and 2.5 hours a week carrying out voluntary or charity work. Calculated using average childcare costs and the minimum wage, this adds up to an annual contribution of £2.03bn.

The report by pensions firm MGM Advantage has been backed by charity for the elderly Age Scotland, which claims older people are contributing more to Scotland's economy than they get back out if it.

A spokesman for the charity said: "Research has shown that, taking together tax payments, spending power, caring responsibilities and volunteering, older people contribute billions more to Scotland's economy than they receive in state pensions, welfare and health services.

"This economic contribution is rarely acknowledged. However, the difference which Scotland's older people make through their volunteering work cannot be overstated. Without this vital support, the cost to the public purse would be immense.

"That's why Age Scotland has called on the Government to provide sufficient support for older volunteers and carers to ensure they can continue making their fantastic contribution."

Almost a third of voluntary workers in Scotland are aged between 60 and 74. However, just 15% of pensioners said they felt valued by society.

The report also revealed that around half of Scottish pensioners have been treated badly at times by the public.

John Downie, director of public affairs for the Scottish Council for Voluntary Organis-ations (SCVO), claimed that pensioners make a "strong contribution" and deserve to be treated with respect. He said: "Older people have more time to give than others and there's definitely a significant element in the voluntary sector.

"There are thousands through- out the country in a variety of sectors, some helping to raise money for cancer charities or helping out with sports or arts groups, and they put a lot of time and effort into what they do.

"They make a major economic contribution and are probably greatly undervalued. They're saving the public purse a lot of money and they're not valued as much as they should be.

"If all these people suddenly stopped volunteering, how would the public sector or charities cope?

"However, at the end of the day they're not doing it to contribute economically, they're doing it because they care and want to contribute to their local community."

Parenting Across Scotland said many parents rely heavily on grandparents for childcare, but that more affordable childcare would help ease the strain on them.

A spokesperson for the charity said: "In a 2010 Ipsos MORI poll for Parenting across Scotland a massive 58% of parents had used grandparents for childcare in the previous year.

"Grandparents are making a massive contribution to the economy through their work as carers and are really important in their grandchildren's lives.

"Where using grandparents to care for their children is a choice and grandparents live nearby, this can be a great option for families.

"However, the rising cost of childcare and shortages of childcare places in many areas mean many parents on low incomes are forced to turn to grandparents as they have no other option. It's important that affordable childcare is available rather than having to depend on grand-parents who increasingly may have to work until an older age."

MGM Advantage executive director Craig Fazzini-Jones, said: "This report paints a wonderfully colourful picture of the rich diversity of the one million retired people who live in Scotland and why they deserve our respect and attention for the contribution they make to the society."