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The Parenthood Pension Penalty: Why Parental Leave Costs Employers More Than You Think

The Parenthood pension penalty
Download the Report

Parental Leave and Family Support UK Benchmark 2025

A new analysis from Octopus Money reveals the real cost of pension gaps caused by parental leave — and shows how employers can act now to retain talent and close the gap.

By downloading the report, you’ll discover:

  • How even a short break in pension contributions can reduce a parent’s retirement savings by tens of thousands of pounds. 
  • That parents who feel financially unsupported during leave are 3× more likely to consider leaving their employer. 
  • The percentage of employees who reduce or pause pension contributions during leave, and the long-term effect on retirement security. 
  • Why many parents don’t plan ahead — and how lack of awareness creates risk for both staff and employers.
  • Four practical, low-cost actions employers can implement immediately to safeguard pensions, boost retention and support families.
 

Read the Hidden Cost of Parental Leave for Employers

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