Penfold is calling for better pension support for self-employed parents, warning that a period away from work can add to an existing gap in retirement saving.
The provider argues that lower income and higher costs during parental leave make it difficult for people working for themselves to maintain pension contributions. It wants the government’s parental leave review to consider support for this group.
“We need to make sure becoming a parent does not leave self-employed people with an even bigger pension gap. The government’s parental leave review is a real opportunity to look at how we can give them better support.”
Chris Eastwood, chief executive, Penfold
The call follows research from the Institute for Fiscal Studies showing that more than three-quarters of regular pension savers stop saving into a pension when they become self-employed. Around one in five self-employed people were saving into a pension in 2022/23, compared with around half in the late 1990s.
Chris Eastwood, chief executive of Penfold, said becoming a parent should not leave self-employed people with a larger pension gap. The company is calling for policy changes; additional pension support is a proposal, rather than an existing entitlement.
The issue adds to the wider debate about how employment benefits and parental support can reflect the needs of a workforce that includes freelancers, contractors and business owners.
