Portsmouth mum says it is ‘hard to plan’ for the future as ‘dreadful’ figures show single mothers’ pension wealth dropped by 40 per cent since the start of the pandemic

According to a recent study, more than half of single mothers (58 per cent) in the UK are now ineligible for automatic enrolment into a workplace pension because they do not earn enough.

This is up from 45 per cent in 2020 - leading a pension provider to call for the government to remove the auto-enrolment trigger of £10,000 and start contributions from the first £1 of earnings.

Despite starting a successful business during lockdown single mum 26-year-old Charlotte Carter, from Portsmouth, does not pay into a pension.

Charlotte, who home schooled her nine-year-old daughter through the pandemic, said: ‘As a single parent and someone who is self-employed, I know first-hand the financial barriers that are faced by both these groups.

‘As much as these new figures are dreadful, they don’t surprise me.

‘As a single mother, it’s hard to plan for the future, as planning for the next month or year can often be a challenge.

‘With the current living costs on the increase, these barriers are only going to get worse, but we’re a resilient group and we will keep fighting for equality in society.

‘I have never even considered my long-term finances as my focus has always been zoned in on what actions I can take to improve my immediate future.

‘I am relocating out of the city in order to secure rental accommodation due to the housing crisis.

‘Single parents' finances are being squeezed, more needs to be done to support single parents save for their future and raising awareness of this issue and the solutions that could resolve it is something that I believe can help make that change.’

The research was conducted by pension scheme NOW: Pensions and the Pensions Policy Institute (PPI).

Samantha Gould, head of campaigns at NOW: Pension, said: ‘It is really troubling that the majority of single mothers are being locked out of workplace pension savings, with single mothers reaching retirement age with the lowest pension wealth on record.

‘The costs of childcare are unsustainable and as a single mother myself, there is already so much pressure as both the sole earner and carer in a household.

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‘Single mothers will be feeling the pinch with many forced to stop working altogether to care for their children.

‘This perpetuates the current pensions gaps experienced by some groups in the UK which need to be addressed.

‘With the majority of single mothers now locked out of workplace pensions, we are calling on the government to make policy changes and remove the auto-enrolment trigger of £10,000 and starting contributions from the first £1 of earnings.

‘This would bring an additional 200,000 single mothers into workplace pensions and increase women’s pension financial security in retirement.

‘We must ensure that everyone has an equal opportunity to save for their futures and build an adequate savings pot for later in life.’

A message from the Editor, Mark Waldron

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