Parents of children with disabilities may see a £138,000 reduction in their pension due to their caring responsibilities keeping them from going back to work, according to The People’s Partnership.
According to an analysis from The People’s Partnership, parents of children with disabilities who go back to part-time work face losing £89,000 in income as opposed to working continuously. Retirement savings are £55,000 lower for those who take professional breaks and return to work at a lower salary.
Furthermore, according to a People’s Partnership survey with over 2,000 participants, nearly two-thirds or 64 per cent of these parents worry about their financial situation in the future. This demonstrates the pervasiveness of the effects of chronic illnesses on children, which impact more than a quarter or 27 per cent of families in the UK.
The majority of parents who are not retired, 53 per cent, do not believe they will have enough money saved for the kind of retirement they want. Meanwhile, only 11 per cent of parents who have children with disabilities believe that the government or charitable organisations do not sufficiently support them in their role as carers.
Carers now have five days of unpaid leave according to the Carers’ Leave Act, which went into force in April. The People’s Partnership is urging employers to foster flexible work environments that assist parents in juggling childcare and employment. It also calls on the pensions industry to improve access to financial planning tools to help close the pension gap for parents of children with disabilities.
People’s Partnership head of responsible business Nicola Sinclair says: “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 child with disabilities, 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 children with disabilities are facing poverty in retirement unless things change dramatically.”
Sense chief executive of the national disability charity Richard Kramer says: “The research highlights the stark reality for parents of children with disabilities, who face significant financial hardships due to their caregiving responsibilities.
“At Sense, we see firsthand the challenges these families face. Very few parents, who are struggling day to day, will have the luxury of thinking about retirement. So it is little surprise that they’re at such a disadvantage when it comes to saving.
“Local and national government must commit long-term resources and funding to support families. And employers must do their bit too – creating more supportive environments with improved flexible working policies. We need to show that we value these incredible individuals in our communities.”
