The parenthood pension penalty

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An overlooked gap that costs businesses their best people and parents their future security

Every year, thousands of UK parents take time out to care for a new child – a milestone of progress that still carries a hidden financial cost: the parenthood pension penalty.

For employers, this isn’t just a personal finance issue – it’s a business issue that quietly drives attrition and disengagement.

New research from Octopus Money shows that even short breaks in pension contributions during parental leave can leave parents especially women – thousands of pounds worse o in retirement and more likely to leave their jobs.

The good news? It’s simple and a affordable to fix. By maintaining pension contributions and offering financial planning before leave begins, employers can protect employees’ long-term security and build loyalty.

In this whitepaper, you will find:

  • Fresh data from Octopus Money which reveals how little parents know about the long-term financial impact of leave, and how they look to employers first for clarity.
  • The root causes and what happens before, during and after leave, and how a lack of awareness leaves employees vulnerable and employers exposed.
  • Solutions for employers with simple practices that are available right now for HR leaders to implement to close the gap and retain top talent.

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Download the report

The Parenthood Pension Penalty Octopus

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