Caring responsibilities threatening long-term financial security for UK workers 

Parents and unpaid carers are facing growing financial pressures that could have lasting consequences for their retirement prospects, according to new research released to mark Carers Week (8 – 14 June 2026). 

Research from the Reward & Employee Benefits Association (REBA), in association with WEALTH at work, suggests that rising childcare costs and the financial impact of caring for older relatives are making it harder for many employees to save for the future. 

The findings highlight a growing challenge for employers as financial wellbeing, workforce participation and long-term financial resilience become increasingly interconnected. 

According to the research, almost a quarter (24 per cent) of parents say they could be forced to leave the workforce if childcare costs rise further. Meanwhile, nearly six in 10 (59 per cent) say increasing nursery fees would result in them reducing their working hours or leaving work altogether. 

For many employees, the impact extends far beyond immediate household budgets. 

More than half (55 per cent) of carers who have reduced their working hours to support others say they have subsequently been unable to save as much for the future, raising concerns about the cumulative impact caring responsibilities can have on retirement outcomes. 

The findings come as employers continue to grapple with the wider consequences of an ageing population, rising childcare costs and growing numbers of employees balancing work with caring responsibilities. 

While conversations around carers in the workplace have often focused on flexibility and wellbeing, the research suggests there may be a less visible consequence emerging: long-term financial vulnerability. 

Reduced earnings, career breaks and competing financial priorities can all affect an individual’s ability to build savings and contribute consistently to a pension over time. 

Jonathan Watts-Lay, Director at WEALTH at work, said: “Caring responsibilities are placing significant financial pressure on many people, whether through the high cost of childcare or the need to reduce income to support an elderly relative. 

“These pressures can make it difficult to manage day-to-day finances, but they can also have a lasting impact on an individual’s ability to save for the future.” 

The research also points to a wider challenge around financial confidence and understanding. 

Nearly three-quarters (71 per cent) of employers identify low levels of pension literacy as a key barrier to employees achieving adequate retirement outcomes, while almost two-fifths (39 per cent) of UK adults lack confidence in managing their money. 

A similar proportion of employers (39 per cent) say employees often do not know where to start when seeking financial support. 

Despite this, workplace financial wellbeing support remains far from universal. Just over half (54 per cent) of employers either offer, or are planning to offer, enhanced financial support specifically for parents and carers. 

While flexible working arrangements, carers’ leave and family-friendly policies have gained greater attention in recent years, the research suggests employers may also need to consider the longer-term financial implications of caring. 

Watts-Lay said: “What we often see is that employees don’t fully understand the long-term implications, particularly when it comes to retirement savings. Gaps in contributions, even over relatively short periods, can make a significant difference over time. 

“This is why financial education in the workplace is so important. By helping employees understand their financial position, the options available to them and the potential long-term impact of key decisions, employers can play a vital role in improving financial resilience and supporting better retirement outcomes.” 

The findings suggest that as organisations seek to support carers more effectively, the conversation may need to extend beyond immediate wellbeing and flexibility concerns to include long-term financial security. 

With millions of employees balancing work alongside caring responsibilities, the hidden cost of caring may ultimately be measured not only in stress and time, but in future financial resilience.