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Government should top up mums’ pensions

A new report recommends that women who take time off work after having children should receive a pension top up following the birth of their first baby. Which? and the Pensions Policy Institute found that mothers who take a career break or work reduced hours to raise a family could be £15,000 worse off compared to those women who work full-time. Furthermore, it was found that they would save £46,000 less than the average full-time employed man. The report suggested that mums should be given a £2,000 contribution to bridge the gap.

Stuart Price, Partner and Actuary at Quantum Advisory, thinks the proposal makes a lot of sense. Stuart says: “There is such disparity between not only men’s pensions, but also full-time working women’s pensions compared to those who work less due to having a family.

“While £2,000 won’t come close to evening the playing fields, it will certainly help and make the tough decision of whether to return to work or stay at home with your children a little easier. The recipient can choose which pension scheme to invest the money in, and over the years it will obviously generate interest.

“Although this is one suggestion to ensure people are prepared for their retirement, I think that increasing minimum contributions is still the key to encourage people to save more.”


Stuart Price is a Partner and Actuary at Quantum Advisory, which has offices in London, Amersham, Bristol, Cardiff and Birmingham.

Established in 2000, Quantum Advisory provides pension and employee benefits services to employers, scheme trustees and members.