Parents of disabled children could have £138,000 less in their pensions if their caring responsibilities prevent them from returning to work.
Research by People’s Partnership calculated the impact of caring for a child with a disability on a parents’ ability to save for retirement.
It found parents who returned to work part-time were £89,000 worse off than parents who are able to continue working.
While those who take a career break to care for their disabled child and receive a pay cut when they return are £55,000 worse off in retirement compared to a normal working parent.
Further research from the provider found that 64 per cent of parents of disabled children were worried about their future finances.
According to People’s Partnership, 27 per cent of parents in the UK have at least one child with a long-term health condition, impairment or illness, impacting millions of families.
For those parents, 53 per cent who are not retired were not confident that they’ll have enough pension savings to live the lifestyle they want in retirement.
Just 11 per cent of parents with disabled children felt adequately supported by the government or charities in caring for their children.
While the Carers’ Leave Act, which became law in April, introduced five days unpaid carers’ leave, People’s Partnership is calling on employers to create the flexibility and workplace culture that allows parents to balance caring and working.
It has also called on the pensions industry to implement better access to financial planning resources and more robust support systems to help close the pension gap for parents with disabled children.
Nicola Sinclair, head of responsible business at People’s Partnership, said: "There is a dire need for more comprehensive support structures for parents caring for children with long-term health conditions.
"Better access to financial planning resources and robust support systems would help relieve some pressure on this forgotten group of people, but further action is needed if we are to avoid another pension gap widening further.
“While flexible working policies offer some relief, tailored support, rather than box ticking, is crucial for long-term financial security and improved retirement outcomes. It’s vital that employers who don’t follow the new flexible working laws are held accountable.
“We need to develop resources tailored to these employees who care for a disabled child, with a focus on combating stigma and creating more inclusive workplaces that allow them to remain in and return to employment. Our research shows that some parents of disabled children are facing poverty in retirement unless things change dramatically.”
alina.khan@ft.com
