Parents of disabled children are facing financial challenges that may impact their retirement savings significantly.
- Research reveals these parents could be £138,000 worse off due to caregiving responsibilities.
- Workplace pension provider highlights the potential pension shortfall linked to reduced work hours or career breaks.
- Government and employers are urged to provide more support and resources.
- The struggle for financial security in retirement looms for many affected families.
Parents of disabled children could face a reduction in pension savings by up to £138,000. This striking figure emerges from research conducted by a workplace pension provider highlighting the financial challenges faced by these families due to caregiving responsibilities.
The analysis attributes this financial gap to two main factors: parents returning to work part-time, and those taking career breaks to provide care. Parents returning part-time are estimated to be £89,000 worse off, while those who return to work after a break, often with reduced pay, face a £55,000 shortfall compared to their peers who continue working full-time.
The study further reveals a pressing worry among parents. About two-thirds express concerns about their future financial stability, and 64% worry about managing pension savings to ensure a comfortable retirement. Additionally, only a small fraction of these parents feel adequately supported by governmental or charitable organisations.
The Carers’ Leave Act, which was enacted in April, provides five days of unpaid carers’ leave annually. However, experts advocate for enhanced flexibility and workplace culture adjustments to allow parents to balance work with caregiving duties effectively. This call extends to the pensions industry, urging them to improve financial planning aid and support systems.
Nicola Sinclair, a representative from the pension provider, emphasises the urgent need for robust support structures tailored to these families. She states, ‘Better financial planning resources are essential to alleviate pressures on parents of disabled children.’ Advocates also highlight the necessity to develop flexible working environments that support continued employment.
Research conducted through interviews with parents points to reduced career progression and lower income levels as significant barriers to pension savings. Many parents unable to work full-time face these hurdles, impacting their financial future.
According to Richard Kramer, Chief Executive of a national disability charity, financial hardship among caregivers is profound and demands action. He calls for long-term governmental support and more accommodating workplace policies to help these critical members of society.
The financial challenges faced by parents of disabled children require urgent attention and comprehensive support from both government and employers.
