New mums 'should be given £2,000 towards pension' proposes new research
4 June 2019, 11:12 | Updated: 4 June 2019, 11:26
New findings reveal working women save a huge £15,000 more for their pension compared to mums who take time off work.
The research, conducted by Which?, reveals the huge amount of savings mothers are missing out on for their retirement because they are taking time off to raise their child.
In order to make this more equal, and give mothers a chance to save more as well, Which? are proposing new mothers are given a £2000 pension boost.
Jenny Ross, Which? Money editor, explained of the proposal: “If the Government is committed to pension equality it should introduce a £2,000 pension contribution for first-time mothers, and also raise the minimum contribution rate for all middle-income earners to ensure they can retire with an adequate pension pot.”
Ross added: “Since its introduction, automatic enrolment has successfully drawn in millions of new savers to workplace pensions, but 'the motherhood penalty', which already impacts women's income, threatens to leave those who choose to work reduced hours due to childcare responsibilities significantly worse off in retirement."
So how will this work if it goes ahead?
If the proposal is to go ahead, every household would pick one of the parents or guardians who would be given the £2000 boost.
In situations where a household does not choose, the money will go to an account with Nest, which is the auto-enrolment pension scheme by the Government.
But what do you think about the proposal? Have your day in our poll below.
