Government must do much more to address pension inequality in the UK, Now Pensions has warned.
Samantha Gould, financial adviser and head of campaigns at Now Pensions, said: "We urge the government to take on our policy recommendations to address pension inequality in the UK.
"Increased availability of affordable childcare, universal automatic enrolment, and the introduction of a family carer’s top up are meaningful steps that can help to start redressing the balance and enabling working parents to have the retirements they deserve.”
Her comments came after data from the Office for National Statistics showed the number of single-parent families in the UK was on the rise.
Many parents are left facing a lose-lose situation of working purely to cover childcare costs or taking an enforced career break themselves. Samantha Gould, Now: PensionsThe data based on the most recent census showed that, in 2021, there were 3mn lone parent families in the UK.
This accounted for 15.4 per cent of families in the UK.
According to the ONS, the proportions ranged from 13.1 per cent in the south-east of England to 17.8 per cent in the north-east.
Gould added: "The image of the nuclear family has clearly changed in the past decade. The expectation that couples will get married, have two children, work for the same employer, and retire at 65 simply isn’t the reality.
“The UK population now has more single parent households and unmarried cohabiting couples than ever before; divorce is also at its highest rate since records began."
Budget measures need to go further
However, she pointed out that while the structure and make-up of Britain's families have changed, the institutions and support systems that many families rely on have not evolved at the same rate.
She said: "With some of the highest childcare fees in OECD, many parents are left facing a lose-lose situation of working purely to cover childcare costs or taking an enforced career break themselves.
"The recent announcement of greater access to free childcare for under twos will enable more people who want to return to work to escape this trap and not sell their future selves short."
As reported by FTAdviser earlier this year, chancellor Jeremy Hunt announced a package of measures in the March Budget to encourage more women to return to the workplace after maternity leave.
But Gould added: "Beyond contributing valuable skills to the labour market, working parents can gain more financial independence and stand a better chance of building enough pension savings to enjoy a comfortable retirement."
Currently, around 2.5mn (17 per cent) of women do not meet the qualifying criteria for automatic enrolment, compared to 8 per cent of male employees.
