A new survey shows that 91% of women want to go back to work but 69% choose not to because of family responsibilities. As a result of these, grandparents are contributing 22.5 billion pounds every year for childcare in order to allow mothers to go back to full-time jobs. 68% of mothers say that they manage to take care of their children through the support of friends and family. 3 out of 4 women go to work while 29% of women with children below 14 years reduced their working hours.
An annual contribution top-up for women pension should be floated to try and mend the gap between what men receive versus women at retirement age. This will cost the government 2.7 billion pounds which will be paid together with the child benefit and credits that go directly to the state’s pension.
Women take home pension money that is equivalent to a third of what men do. This is because; many women choose to do part-time jobs to be able to create time for family responsibilities.
The new proposed plan
According to the top-up plan, the government should top up the pension pots for those women who choose to give up their jobs or do part-time jobs for the sake of their families. The top-up will be equal to 8% of the minimum contributions that are being paid by workers and employers in the national living wage and auto-enrolment scheme respectively. The top-up is supposed to be paid.
The PPI (Pensions Policy Institute) says that this plan would earn the government more VAT as women will rely less on the state after retirement because they will be having money to spend.
Private Investment pension
It is important to invest pension money or transfer it to a private investment pension to make it easier to manage and save on fees. A private pension is pension money built and fully managed by an investment company to ensure you finally enjoy your money in style after retirement. The investment team builds and manages your portfolio, rebalances your pension to maximize returns and minimize risks.
The company adjusts the pension investments as time goes by and even de-risk your portfolio as you approach your retirement age. Once you retire, you are allowed to access your money as much as you want. You are free to withdraw money from your pension without the fear of incurring additional fees.
Other ways to help women care for their children
-Employers introducing flexible working hours for women to ensure they balance their work and home time.
-Women still make contributions to a pension when they are still taking care of their children.
-Grandparents should take advantage of National Insurance credit transfers from parents so that they may not lose state pension when they start giving to their grandchildren.
More efforts are being put in place to ensure that women have an equal opportunity as men when it comes to saving for their retirement