Pension & retirement
Ameeta Panessar
It’s that time of year when all our amazing superwomen get the spotlight: Mother’s Day.
We know that for a lot of mums, it’s a constant juggling act – trying to manage childcare, possibly pursuing a career, the day-to-day of managing a household, family logistics, trying to plan for the long-term, looking after their physical and mental wellbeing and the emotional labour of it all, all at once – and with a smile and probably a lack of sleep if the children are young.
There’s a huge invisible workload as well as the visible one and can take its toll.
Eeven superwomen need a financial plan.
Motherhood can change everything, including finances.
A child’s arrival often means a huge shift in priorities.
It might suddenly feel that that long-term planning is now more urgent, financial resilience is now essential and the question tends to shift from “will I be okay?” to “will they be okay?”.
Mother’s Day is the perfect time to reflect, not just on the emotional side of motherhood but the financial foundations supporting it.
There are a few areas we can look at to help bring clarity to family finances and future planning, which in turn can help reduce the toll that motherhood can sometimes take.
There are a couple of potential quick wins that could help when it comes to managing the increase in day-to-day expenditure that comes with having children.
You may be entitled to 30 hours of free childcare a week if you live in England and have a child between 9 months and 4 years old.
It’s important to note that certain factors (such as employment and earnings) play a part in eligibility, so this won’t be for everyone but it’s definitely worth checking if this is something you can claim for).
If you live in the UK and have a child under 16 (or under 20 in approved education/training), you may be able to claim a tax-free child benefit payment every 4 weeks.
You can find out more about what qualifies for approved education/training on the Gov.uk website.
A High Income Child Benefit Tax Charge may apply if you or your partner earn over £60,000 but this could still be worthwhile.
In addition to these benefits, there are also some helpful savings vehicles that you could consider for your children, as well as important considerations in terms of dealing with a financial emergency.
These can be used to save for children under the age of 18.
Limits are currently set at £9,000 per year for the 2025/26 tax year and any gains and income are tax-free.
These can be opened either as Cash ISAs, Stocks and Shares ISAs, or both.
You can find out more about Junior ISAs in our recent article.
One way to help achieve a level of financial resilience is to work towards ensuring an easily accessible savings pot.
This should have at least 3-6 months’ worth of essential expenditure, not earmarked for anything other than an emergency fund.
This pot helps provide a buffer to be able to cover anything that might crop up unexpectedly, such as redundancy or unexpected bills.
Motherhood is a beautiful thing and being able to take time out to care for children is incredibly special.
Sadly, for a lot of mothers, this can also mean extended periods of time where personal and employer contributions into pensions aren’t being made.
This can then have significant effects on retirement savings in the long-term.
In addition, 35 years of qualifying National Insurance contributions or credits are required in order to be entitled to receive the full State pension at State Pension Age.
These NI contributions can also be significantly affected during this time.
When children are young, retirement can feel like a distant concept. However, the earlier planning begins, the more flexibility it creates later.
An important point in terms of retirement is that, according to the Office of National Statistics, women statistically live longer than men in the UK.
Inevitably, this means that retirement funds may need to stretch further than anticipated – and also be more resilient.
Some of the key considerations when it comes to retirement for mothers include:
Seeking financial advice can be instrumental in planning for the future and helping ensure that your retirement looks the way you want it to.
The clarity and peace-of-mind that this can create can be unmatched.
For many families, one of the biggest financial risks to a household is loss of income due to illness or death.
Financial protection planning is quite often put onto the back burner as it’s seen as not being ‘today’s problem’, but if either of these eventualities ever occurs, protection planning can be the difference between being able to continue looking after your family as normal or struggling to make ends meet.
Another important point to note here is that even unpaid caregiving has financial value and so protecting this is crucial.
By this, I mean that if one parent spends more time looking after the children, either by not working, or working less hours, replacing this childcare if something happened could be incredibly costly.
This pays out an income if you are unable to work due to illness or injury.
This pays out a lump sum in the event of death.
Joint policies can also be taken out between spouses and can also be held in trust.
This means the beneficiary of the payment does not have to wait for lengthy probate, which can have financial and emotional consequences at an already difficult time.
Life insurance policies can be in the form of term assurance (term-specific and may be aligned to a liability such as a mortgage or other debt) or on a Whole of Life basis.
This is similar to life insurance but pays out an income rather than a lump sum on death.
It can be critical for ensuring children are able to be looked after if something happened to you or your partner.
This is a lump sum paid out in the event of serious illness.
The definitions of what is included vary between insurers and this is where a financial adviser can help.
Protection simply ensures that difficult circumstances do not become financial crises.
Estate planning is often postponed but is one of the most critical steps parents can take.
As simple as it sounds, getting a Will in place, or ensuring it is up-to-date helps to:
Reviewing beneficiary nominations on pensions and life policies are also important to review and update, as these typically sit outside of a will.
As mentioned, since women are statistically more likely to outlive male partners, reviewing ownership of assets, tax planning strategies and long-term care considerations can provide the assurance that your legacy is protected.
Financial planning for mothers is not just about spreadsheets and products, it’s about confidence.
Confidence that:
Motherhood often involves putting others first. A financial plan that is robust and unique to you can ensure that doing so does not come at the expense of your own long-term wellbeing.
As Mother’s Day approaches, it may be worth asking not just what you are doing for your family today, but how you are supporting the woman who is holding it all together.
An expert financial adviser can help you create a robust yet flexible financial plan to help guide you through motherhood and beyond.
Get in touch with one of our advisers today to find out more.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
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Financial planning for mothers ensures family security, protects against income loss, supports retirement goals and helps create long-term financial resilience.
Taking career breaks or reducing hours can reduce pension contributions and National Insurance credits, potentially lowering retirement income.
Parents may be eligible for Child Benefit, childcare support and National Insurance credits. Eligibility can be checked via Gov.uk.
Families often consider income protection, life insurance, family income benefit and critical illness cover to protect against loss of income.
Ideally, families should aim for 3–6 months of essential expenses in an easily accessible emergency.
Yes. A Will ensures assets are distributed correctly and guardianship arrangements are in place for minor children.
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