Parents of disabled children could have an estimated £138,000 less in their pensions at retirement if their caring responsibilities prevent them from returning to work, analysis from People’s Partnership has revealed.

The survey of more than 2,000 adults found that more than a quarter (27 per cent) of parents in the UK have at least one child with a long-term health condition, impairment or illness.

Calculating the impact of caring for a child with a disability on parents’ ability to save for retirement, the research found that parents of disabled children who return to work part-time are £89,000 worse off than parents who are able to continue working.

Meanwhile, those who take a career break to care for a disabled child and receive a pay cut when they return are £55,000 worse off in retirement compared to a normal working parent.

People's Partnership also found that 64 per cent of parents of disabled children are worried about their future finances, with over half (53 per cent) of non-retired parents not confident that they’ll have enough pension savings to live the lifestyle they want.

In addition to this, the research found that just over one in 10 (11 per cent) feel adequately supported by the government or charities in caring for their children, with a number of factors "significantly hampering" parent’s ability to save for their retirement.

These included reduced earnings through lack of career progression, having to take a lower paid part-time job, and often only having one household income.

People's Partnership also stressed that, often, parents are unable to return to work at all due to the demand of care, limiting their ability to save for retirement even further.

In light of these concerns, People's Partnership called on employers to provide the flexibility and workplace culture that allows parents to balance caring and working.

In particular, the group encouraged employers to implement flexible working policies, internal support groups and leave policies that are similar to maternity and paternity policies, but for parents of disabled children, to better support carers in their careers.

It also urged the pensions industry to implement better access to financial planning resources and more robust support systems to help close the pension gap for parents with disabled children.

People’s Partnership head of responsible business, Nicola Sinclair, stated: "There is a dire need for more comprehensive support structures for parents caring for children with long-term health conditions.

"Better access to financial planning resources and robust support systems would help relieve some pressure on this forgotten group of people, but further action is needed if we are to avoid another pension gap widening further.

“While flexible working policies offer some relief, tailored support, rather than box ticking, is crucial for long-term financial security and improved retirement outcomes. It’s vital that employers who don’t follow the new flexible working laws are held accountable.

“We need to develop resources tailored to these employees who care for a disabled child, with a focus on combating stigma and creating more inclusive workplaces that allow them to remain in and return to employment.

"Our research shows that some parents of disabled children are facing poverty in retirement unless things change dramatically.”

Sense chief executive, Richard Kramer, also highlighted the research as demonstration of the “stark reality” for parents of disabled children, who face significant financial hardships due to their caregiving responsibilities.

“Local and national government must commit long-term resource and funding to support families. And employers must do their bit too – creating more supportive environments with improved flexible working policies," he stated.

“We need to show that we value these incredible individuals in our communities.”

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