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UK facing childcare shortage as grandparents increasingly choose to work into retirement

22nd September 2014 Print

Research from Aegon UK, the life and pensions company has found that 29% of Brits are intending to work part time for some or all their retirement in order to supplement their income. An estimated 9.8 million grandparents provide childcare and many parents rely on this largely free resource. 

During the recent summer holidays, if the 9.8m grandparents who look after children currently, provided three days a week of childcare for six weeks, they effectively saved parents a collective £5.1bn in care costs. 

National childcare costs have risen by more than a quarter (27%) over the past five years and at the beginning of the summer, a survey of local authorities revealed just 27% had enough holiday childcare for working parents, so grandparents are currently providing welcome relief. 

David Macmillan, managing director at Aegon UK said: “We are living longer and many people can expect to spend twenty or thirty years in retirement. As a result it is not surprising that many people intend to work part time in retirement.

“However, many parents rely on the generosity of a grandparent to help with childcare and this trend may have a significant impact on the amount parents need to set aside for childcare costs. Another take on this trend would be to look at the increasing financial support older generations are providing to younger generations. We may well see grandparents continuing to work not just for their own financial needs but in order to support younger family members with childcare costs, school fees and broader costs such as the ability to get on to the housing ladder. 

“The industry must continue to support savers so they can achieve the retirement and flexibility they want and give them a choice as to whether they would like to keep working in retirement. A simple and easy way to manage your finances and view progress against a number of goals is key. Aegon recently launched the Retiready online digital tool to help consumers easily manage their pensions savings and see if they are on track for the retirement they want, whether that includes part time work or summer fun with the grandkids.”