Calls for government to top up pension pots of women who care for children or the elderly
30 October 2019
The Social Market Foundation (SMF) has published a press release.
It shows that a think-tank has pledged support for the idea of the government investing public money into the personal pensions of women who take a period of leave from work, either to focus on childcare or to provide support for the elderly.
The results stem from the notion that women are much more likely to take time off work to tend to others than a man would be. This leads to lower earnings, which has a direct impact on pension savings. Combine this with the fact that the life expectancy gap is widening between men and women, with the latter typically living for longer and it results in women receiving lower pensions than men. This is commonly referred to as the ‘gender pensions gap’.
One recommendation for reducing this gap is for the government to add funds to the pensions of women who take time off work to care for children or the elderly. The Chief Economist at the SMF, Kathryn Petrie commented, “For all the strides we’ve made towards equality, social attitudes that push women to give up work to care for children and parents remain strong. As well as trying to give women and men more flexibility and choices, government policies should do more to help women with the financial implications of taking time out of work.”
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