Raising a family can be a financial strain at the best of times, but doing it on your own brings unique challenges. With so much focus on day-to-day costs, it’s easy for long-term saving to take a back seat.
That’s why it’s perhaps unsurprising that the average single-parent household has around £24,000 saved for retirement. For couples with children, that figure rises to £97,000 - more than four times higher.
Single mothers make up 89% of all single-parent families. That’s why much of the research focuses on them - though these challenges affect many people raising children alone.
One-in-three working single mothers can’t access a workplace pension at all, despite being employed. Research suggests that as many as 75% risk living in poverty in retirement.
These figures highlight how important it is for pension saving to work for everyone. With better access and clearer information, more single parents could take control of their long-term financial wellbeing.
The £10,000 barrier
To be automatically enrolled into a workplace pension, you need to earn at least £10,000 a year (2025/26). For many single parents, reaching that threshold can be difficult.
Around 54% of single mothers work part-time while balancing childcare, school runs, and often more than one job. Part-time roles often pay below £10,000, which means:
- no automatic workplace pension;
- no employer contributions; and
- you have to ask your employer to add you to their pension scheme.
There are currently 1.59 million single mothers in the UK workforce, but only a fraction are enrolled in workplace pensions. Those who do qualify contribute an average of £885 a year - almost half the UK average of £1,573.
Part-time workers often fall outside Auto-Enrolment, so they can miss out on employer contributions and the tax top ups that help a pension grow. Many also don’t realise they have the right to opt in.
This hits single mothers hardest. A large share work part-time and earn below the threshold, which means they’re building up less pension than they should - even though an employer contribution could make a real difference over the long term.
There’s another catch. When your employer calculates pension payments, they don’t count your full salary. Only the amount you earn between £6,240 and £50,270 is included. So if you earn £10,000, only £3,760 counts towards your pension.
For single parents already managing tight budgets, this can make saving even harder.
The impact of childcare costs
Childcare in the UK is among the most expensive in the world. Full-time nursery care for a child under two costs around £12,425 a year in England and £15,083 in Wales. In London, costs can reach around £21,600 a year - around 33% higher than the rest of the country.
For single parents, this can amount to more than half their take-home pay. In London, childcare can reach 74% of a single parent’s income, compared with a UK average of 51%.
That leaves little room for essentials, let alone pension contributions.
The government offers support through Universal Credit, which covers up to 85% of eligible childcare costs.
But that still leaves 15% to pay, plus limits on what qualifies. Free childcare hours - between 15 and 30 depending on the child’s age - only apply if parents earn between £9,518 and £100,000, and nursery places can be hard to find.
The motherhood penalty in retirement
On top of eye-watering child care costs, career breaks can have a long-term impact on pension savings.
Because single parents don’t have a partner to share childcare duties or top up savings during those years, the gap often widens even further.
This creates a cycle that’s difficult to break as:
- lower earnings mean lower contributions;
- career breaks mean missed years of growth; and
- by retirement, pension pots may fall far short of what’s needed.
Career breaks and part-time work can have a lasting effect on pension savings, often leading to smaller pots over time.
According to Pensions UK, a minimum retirement lifestyle for one person costs around £13,400 a year (2025/26) - or £294,800 over 22 years. For many single mothers, reaching this level can be challenging.
The gender pension gap means single mothers often retire with smaller pots than men, reflecting the combined effects of lower earnings, part-time work, and time spent caring for children.
What’s being discussed
The government is taking a closer look at why many people may retire with less than previous generations. In July 2025, it launched the Pensions Commission - a major review into the future of retirement saving.
The Commission will report in 2027 and is focusing on:
- low earners being locked out of pension saving;
- the 48% gender pensions gap between women and men; and
- whether Auto-Enrolment should be extended to more workers.
New government data shows:
- only one-in-four low earners in the private sector are saving into a pension;
- 45% of working-age adults are saving nothing at all; and
- women approaching retirement may have a private pension income around £5,000 a year lower than men.
If changes go ahead, they could make a real difference. Research suggests that removing the lower earnings limit could:
- bring around 400,000 more single mothers into the pension system;
- increase annual pension contributions by more than 50%; and
- grow average pension pots from £48,000 to £75,000 over time.
The tools to do this already exist. The Pensions (Extension of Automatic Enrolment) Act 2023 gives the government power to lower the age threshold and remove the lower earnings limit - but it hasn’t yet been put into action.
The main challenge is timing. With the review’s report not due until 2027, any changes would come after that. Each year of delay may mean millions in missed savings for single parents and other low earners.
What you can do now
Being a single parent often means carrying the load alone emotionally and financially. And pensions can feel like one more thing on an already long list. But there are small, manageable steps that can help you feel more in control of your future, even while policy catches up.
Check your State Pension forecast
Visit GOV.UK to see what you’re on track to receive. If you’ve ever claimed Child Benefit, you may have built up National Insurance (NI) credits for those years - these credits can help fill gaps and protect your State Pension.
Opt into your workplace pension
To be enrolled automatically into a workplace pension, you need to:
- work in the UK;
- be aged between 22 and the State Pension age (currently 66, rising to 67 in 2028);
- earn more than £10,000 a year; and
- not already be part of a qualifying workplace pension scheme.
If you don’t meet these criteria but you earn between £6,240 and £10,000, you can still ask to join your employer’s scheme. If you do, they have to pay in at least 3% of your qualifying earnings.
Once you’re enrolled, the minimum you pay is currently 5% of your qualifying earnings (between £6,240 and £50,270 for the 2025/26 tax year). Your employer must add at least 3%.
Some employers offer more than the legal minimum. They may match what you pay in, up to a limit. It’s worth checking with your HR team to see if this applies to you, as these extra contributions can give your retirement savings a real boost.
Combine your old pensions
Many single parents have worked different jobs over the years. Small pots can be easy to lose track of, but they still belong to you. Bringing them together can reduce fees and make things easier to manage.
Top up when you can
Even small amounts count. If you contribute personally, the government usually adds a 25% tax top up - for every £100 you pay into your pension, it becomes £125. There’s no pressure to contribute every month; even occasional payments can make a difference over time.
Make sure you’re claiming everything you’re entitled to
Benefits, childcare help, cost-of-living support - all of these can free up room in your budget. Organisations like Gingerbread and Citizens Advice can help you check what you’re eligible for.
Name your beneficiaries
It’s a simple step, but an important one. Adding beneficiaries means your pension can go to the people you choose if something happens to you.
Looking ahead
Single parents are doing the work of two people on one income. It’s a big responsibility, and it often leaves very little space - or energy - to think about the long term.
While wider changes take time, there are manageable steps that can help you protect your future.
Remember, there’s no pressure to get it all right - just do what you can, when you can. Every contribution, however small or irregular, plays a part in your future.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
