As the unsung heroes of the family unit, stay-at-home parents must be properly compensated for their work in the home with a stable retirement, says Carol Brick
According to a survey conducted by Royal London Ireland in 2022, 88 percent of women believe that the role of the stay-at-home parent is undervalued or under-supported in Ireland.
About 349,500 people in Ireland work as stay-at-home parents, with 94 percent being women, the survey found, highlighting a possible risk of poverty for those people upon retirement.
Despite the invaluable work done by these individuals, more than eight in 10 agree that their role is undervalued or under-supported.
According to the Royal London Ireland research, the annual cost to employ someone to do the household jobs usually completed by a stay-at-home parent would be an estimated €53,480.
However, the survey participants estimated the potential ‘salary’ of the stay-at-home parent at an average of €28,460 per year.
Those who give up work to look after a family, whether male or female, are the least likely to save for retirement.
Stay-at-home mums are at the highest risk, as retirement savings are not on the agenda without an income. This is a significant concern as the state pension, after taking their years as a homemaker into account, will be approximately €12,000 per year.
These individuals must consider financial protection and planning to ensure their family is financially secure, especially in the event of an unexpected death or illness.
Long-term effects
If stay-at-home parents in Ireland do not plan for retirement, they may face serious financial consequences in their later years.
Without a steady income stream, they may struggle to cover their living expenses, healthcare costs and other essential needs. This can lead to a lower standard of living and reduced quality of life during retirement. Without a financial plan, they may have to rely on their adult children or social welfare.
Furthermore, not planning for retirement can limit the options available to stay-at-home parents. They may be forced to work longer than they would like or take less-than-ideal jobs to make ends meet, limiting their ability to travel, pursue hobbies or support their families in other ways.
Planning for retirement can help stay-at-home parents in Ireland achieve financial security and allow them to enjoy their later years.
Lastly, not planning for retirement can affect their mental and physical health.
Stay-at-home parents may experience higher stress levels, anxiety, and other adverse health outcomes without the financial resources to cover medical expenses or other healthcare needs.
Planning for retirement can help stay-at-home parents in Ireland maintain their physical and mental health and enjoy a fulfilling and satisfying retirement.
Society often undervalues or under-supports the role of stay-at-home parents, despite their invaluable contributions to their families and communities. I encourage individuals to prioritise financial planning and protection, no matter their employment status.
Carol Brick is Managing Director of CWM Wealth Management and HerMoney.ie
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