Single mothers earn 53 per cent less than the average man and 37 per cent less than the average woman, "significantly" impacting their ability to save enough into their pension pot, research from Now Pensions and the Pensions Policy Institute (PPI) has revealed.

The report also pointed out that the number of single mothers who work part-time is 54 per cent compared to the UK average of 21 per cent and they have the lowest rate of labour market participation of all groups.

On average, women spend 10 years out of the workforce to raise children or for carer responsibilities resulting roughly to £39,000 in lost pension savings.

Furthermore, one in three working single mothers are ineligible for a workplace pension under the current auto-enrolment rules, and missed out on £852m in pension savings since 2012.

This means many single mothers have lost out on employer contributions and tax relief to their pension as they are below the threshold for auto-enrolment.

However, women aren’t the only group who face consequences with wages, as the resarch showed that, overall, single parents have the lowest average income for both men and women with single fathers earning 32 per cent less than the average man.

Commenting on the findings Now Pensions director of policy and public affairs, Lizzy Holliday, said: “Data shows the current system has a disproportionate impact on working single mothers – and they are missing out on the critical support and contributions that other workers benefit from. This gap can also have a detrimental impact on future career and pay progression.

“We welcomed the continued delivery of measures on childcare and announcements at the Spring Budget on child benefit – but we are keen to see the practical and delivery challenges for childcare provision addressed.

“The scale of the gender pensions gap remains vast and will require bold policy actions. Setting out a roadmap for the future of automatic enrolment, including tackling difficult issues of adequacy in retirement - which affects women disproportionately - should be front and centre of next steps.”

Adding to this PPI senior policy analyst, John Adams, stated: “Data shows that single parents have the lowest average income, and single mothers have the lowest rate of labour market participation of all groups.

“Inequalities in the labour market, taking time out of employment, as well as employers not investing in the careers of those with caring responsibilities, can all have a serious impact on the later life outcomes of those raising children on their own.

“While there are some pensions policy options that could be introduced to help single parents save for their retirement, it’s unlikely to significantly improve their outcomes without changes in labour market conditions and better access to affordable childcare.”

Earlier this year, Now Pensions called on the government to remove the £10,000 auto-enrolment earning trigger and lower the earning limit.

In addition to this, the pension provider also called for the government to ensure affordable childcare is more accessible and introduce a family top-up.

---