Pension wealth of single mothers in Stamford and Rutland faces all time-low

There's currently under one million single mothers working in the UK

Author: Ellis MaddisonPublished 24th Mar 2022

Single mothers across Stamford and Rutland could be seeing their pension wealth hit an all-time low.

The research, conducted by Now: Pensions, shows that the average worth has plummeted by 40% in the last two years.

The overall value now sits at £11,000, whereas the average pension wealth for single mothers in 2020 was £18,300.

58% of single mothers are unable to automatically enrol for a workplace pension.

The Pensions and Lifetime Savings Association's (PLSA) retirement living standards suggest an income of £20,200 a year is needed to live a 'moderate lifestyle'.

That means single mothers retiring with a pension worth £11,000 could face pension poverty.

Affording the day-to-day

Some single parents are having to opt-out of paying into pension schemes to get the extra cash up front and help pay the day-to-day cost of living.

That's what Emma Hotchkin from Lincolnshire says - she's a single mother that does have a pension, but has experienced the difficulties of the poverty line.

"I know there's a lot of people who aren't in that position to be able to sign up to the auto-enrolment, they choose to opt-out because they need that extra money. I mean, an extra five pounds can make a massive difference if you are living literally pay check to pay check.

"I have been in a position where it is near the poverty line. You're making choices between being warm and eating at that point, and it's not a fun decision to make.

"You just think I've got this small person I need to look after and make sure that they are fed and clothed, but you can't think beyond the day-to-day and think 'what can I do in the future to save'... you don't really think about that, you think about the here and now and what you can do to support your child."

Hear all the latest news from across the UK on the hour, every hour, on Greatest Hits Radio on DAB, smartspeaker, at greatesthitsradio.co.uk, and on the Rayo app.