Pension Penalty FAQ

The pension penalty is the long-term financial cost of motherhood, and the main reason the gap exists.

After having children, many women earn less because of maternity leave, reduced hours, career breaks, discrimination and unequal caring responsibilities. Over time, that means smaller pension contributions and a smaller pot, not because you didn't care or weren't thinking about the future, but because you were getting through the present in a system that doesn't account for mothers' experiences. It isn't caused by one decision or one life event. It builds up over years, and it’s not your fault. 

Pensions are usually built up through paid work.

When women take maternity leave, move to part-time work, take career breaks, or step back from progression opportunities because of caring responsibilities, they often earn less and contribute less to their pension.

At the same time, many fathers see their earnings continue to grow after becoming parents.

Over a lifetime, these differences add up, creating a substantial gap in retirement income.

Potentially, yes.

Many mothers return to work after having children, but often on reduced hours or in roles that offer more flexibility. Some experience slower career progression or miss opportunities for pay rises and promotions.

Part-time work can affect pension savings because pension contributions are often linked to earnings.

Many mothers move to part-time work to balance childcare and employment. While this can be the right choice for families, it can mean lower pension contributions for years or even decades.

This is one of the key reasons women build up less pension wealth than men.

You're not alone.

Millions of women have stepped back from paid work to care for their children. While that care has enormous value, our economy and pension system often fail to recognise it.

Time spent out of work can affect earnings, pension contributions and future career opportunities, which is why many mothers experience lower retirement incomes.

The pension penalty doesn't only affect mothers of young children.

Many women spend years providing unpaid care for elderly parents, disabled relatives or loved ones with long-term health conditions. This can have a similar impact on earnings and pension savings.

Care is vital work. It shouldn't leave people financially worse off in retirement.

The first step is understanding your situation.

That's why we're creating a practical guide to help you identify the factors that can affect your pension, understand where you might be losing out, and learn what steps you can take to better protect your future finances.

Sign up to be the first to receive it when it launches.

Absolutely not.

Whether you're pregnant, raising young children, returning from maternity leave, caring for family members or approaching retirement, there are steps you can take to understand and improve your retirement prospects.

The earlier you start, the better. But it's never too late to get informed.

You don't need to become a pensions expert overnight.

Start by understanding how your working patterns, caring responsibilities and pension contributions might affect your future finances.

We'll be releasing simple resources, practical guidance and expert advice to help you make informed decisions at every stage of life.

Because the motherhood penalty doesn't end when children start school.

The financial impact of motherhood follows women throughout their careers and often into retirement. Women spend years providing care that benefits families, employers and society, yet they're too often left financially worse off as a result.

We're campaigning for a future where caring for the people you love doesn't mean sacrificing your financial security.

Women should not retire poorer because they cared for their families.

We need a pension system that properly recognises unpaid care and better protects those who take time out of paid work to look after others.

Because caring isn't time lost. It's work that keeps society functioning.

You can help us raise awareness of the pension penalty and push for change.

• Join the campaign
• Write to your MP
• Share the campaign with friends and family
• Follow us on social media
• Sign up for updates on new research, resources and events

Together, we can make sure caring counts.