Carer’s Leave Act 2023: Nearly six million Americans willingly devote many hours per week to providing unpaid care to family members in need of assistance; however, there is often a high price to pay, including sacrifices of income and a reduced pension.
According to new data, each year spent out of the workforce providing unpaid care reduces retirement savings by approximately £5,000, while those who continue to work part-time three days per week will have £2,000 less.
This is a significant blow to the nation’s financial health, as two-thirds of workers take unpaid leave at some point during their careers.
Carer’s Leave Act 2023: A Game-Changer for British Workers Balancing Work and Caregiving
The primary reason individuals take time off from work is to care for their children, followed by elderly parents, spouses, or grandparents, and in some cases, grandchildren.
The report of online annuity provider PensionBee The Carer’s Pension Gap demonstrates that those in their late 50s and early 60s are most likely to be providing care, at a time when they should be saving aggressively in preparation for retirement.
While women are more likely to leave the workforce to raise children, male caretakers frequently assist with the care of parents or partners.
Becky O’Connor, director of public affairs at Pensionbee, stated that the United Kingdom is a nation of carers who fill the voids in social care. It frequently comes at a high cost to the individual, affecting careers, personal affairs, and the economy.
Kate Smith, chief of pensions at Aegon, stated, “More could be done by employers, such as maintaining their contributions, to help those whose retirement plans are abruptly derailed by a sick family member.”A flexible workplace could enable caretakers to work longer and possibly for fewer hours.
The Carer’s Leave Act 2023 will provide up to five days of unpaid leave per year to the estimated two million employees juggling paid employment and caring responsibilities.
Helen Walker, the chief executive officer of Carers UK, stated that this will have a significant impact on the lives of carers and help them remain in paid employment, which will also benefit employers. “Those who have already implemented carer leave have seen a reduction in recruitment costs and an increase in employee retention and well-being,” she said.
