‘Thanks For Your Service’ campaign launched by pregnant then screwed

UK charity Pregnant Then Screwed has launched a new national campaign – ‘Thanks For Your Service’ – exposing how the cost of motherhood follows women into retirement.

Millions of mothers sacrifice pension savings because of childcare responsibilities, contributing to a gender pension gap that leaves women with 33% less pension wealth than men.

In retirement, women in the UK receive 33% less on average than men. The system rewards continuous full-time employment while penalising those who reduce or leave work because of caring responsibilities.

A recent YouGov survey found that mothers on low and middle incomes are being forced to make impossible choices between managing childcare costs today and building financial security for tomorrow. When asked why their pension contributions had reduced, 42% said they had little or no choice because of childcare responsibilities.

The cost of caring doesn’t stop when the working day ends.

Throughout their working lives, women are more likely to work part-time or make career compromises to care for children and other family members. The new data shows that:

36% have reduced their working hours because of childcare.
28% have taken time out of work after having children.
22% have changed jobs to fit around childcare.
18% have left work for a period because of childcare.
18% have prioritised childcare costs over pension saving.

Only 8% of respondents said they felt in control of their pension savings, while just 5% felt confident about them.

Rachel Grocott, CEO of Pregnant Then Screwed, said: “The inequality in pensions is structural. Our pension system is designed to reward people who have continuous full-time employment, and this penalises every woman and parent who leaves or reduces work due to caring responsibilities.

“The high cost of childcare, inflexible working practices and ongoing misogyny which says ‘that’s just the way it is’ all contribute to this inequality. Women live longer, yet they also make up most of the pensioners who are living in poverty. This is a huge kick in the teeth on mums for simply doing the right thing for their family.”

The maternity penalty

Women can also have their employee pension contributions miscalculated during maternity leave, resulting in losses of thousands of pounds. The financial impact accumulates quietly and invisibly until decades later, when it shows up as a significantly reduced pension. Pregnant Then Screwed is urging mothers to check their pension contributions during motherhood.

When mums were asked how they feel about their pension savings, responses were dominated by negative or uncertain feelings:

40% feel worried.
29% feel anxious.
26% feel resigned.
16% feel overwhelmed.
14% feel the situation is unfair.

Only 10% felt proud of what they had put away.

Grocott added: “This gender pension gap isn’t something that mums have created; it’s the result of a system that does not value childcare and the true value that mums bring. Mums aren’t bad at saving; they just don’t have any other choice but to sacrifice their future by being there for their children.”

Find out more about the campaign here.