Diverting funds from retirement investment into childcare could be putting thousands of women in their 20s and 30s at risk of future shortfalls, warns a report from the Fawcett Society.
The Society was set up in 1866 with roots in the Suffragette movement, and has been campaigning for gender equality ever since. It claims that what currently exists today as a male-female wage gap will later on translate to a male-female pension gap, and the reason is that women are tending to foot the bill for having children, leaving less to invest in retirement as a result.
Taking time out of work or paying the majority of childcare costs, while taking a more passive role in financial decision-making is described as the root of the problem; issues which stem from ‘traditional’ gender roles.
Sam Smethers, Fawcett Society Chief Executive, commented: “In particular women are taking a big hit on their pensions when they have children, but are not aware of the impact this will have on them in the long-term.
“Women are putting everyone else’s needs before their own especially when it comes to who pays for childcare. Their baby becomes her childcare bill.”
DPTFS would always advise every individual to consider their own requirements as well as the overall family view, and our experts are on hand to guide people through the challenges that balancing today and tomorrow’s requirements can throw up.
Quoted by the BBC, a Department for Work and Pensions spokesman added: “We want all women to have a financially secure retirement, which is why we introduced wide ranging reforms to make pension saving easier and clearer, including through the introduction of the new state pension and automatic enrolment.
“We are also committed to supporting mothers by making childcare more affordable and more accessible, and we are doubling free childcare for nearly 400,000 working parents of three and four-year-olds from 15 to 30 hours.”
To read more about The Fawcett Society’s findings, click here.