Mothers return to work early as recession eats into family budget

Published on Tuesday 7 April 2009 22:22

STAY-AT-HOME mothers are planning to head back to work sooner than planned to plug gaps in the family budget during the economic downturn.

An online poll of 1,148 adults revealed that 70 per cent of mothers were re-entering the job market earlier than originally intended because of "money concerns".

More than half said they would head back to work six to 12 months sooner than they expected – or even immediately.

A further 33 per cent felt "an urgent need" to start contributing to the family's finances and aimed to return to work as soon as possible, according to the YouGov survey conducted for Avon Cosmetics.

When asked why they needed to go back to work, 20 per cent of the mothers who were previously committed to bringing up their children full time cited a shortfall in the family budget, and 27 per cent expressed fears about the impact the recession would have on their family's income.

One in ten respondents said they were concerned that their husband was likely to be made redundant over the next year.

Anna Segatti, president of Avon UK, said: "What we are seeing in our Avon Mum-Economics Study is a real 'Blitz' spirit, with women jumping into action to help fund their family through the tough times. However, the main obstacles women foresee focus on finding flexible work, with over half the mums we spoke to worried about managing the school run, kids' sick days and, of course, school holiday schedules."

Catherine Hanly, the editor of Raisingkids.co.uk, said the findings were reflected in postings on the website.

She said: "This is something we're hearing more and more about on our forums – mums are either going back to work earlier than planned, or are returning to work when they had planned to stay at home indefinitely."

Sue Robertson, director of One Parent Families Scotland, said: "A lot of women in Scotland are anxious, in the current economic environment, about household income and retaining jobs or entering the jobs market. Certainly we know it's a further blow to parents who are still struggling to pay big fuel bills from the winter months."

Maxine Benson, the founder of Everywoman, a group for female entrepreneurs, describes an increase in the number of mothers who are starting up their own businesses in a bid to earn money during the recession.

She said: "We expect to see this rise even more in the near future as women have to seek out flexible earnings opportunities to fit around their family needs."

DRIVEN BACK TO WORK BY DEBT

The 26-year-old mother says the family faces "major money worries" but there is no way to pay off what she owes unless she works.

She has a partner who works full-time but with two young children – Jasmine, four, and Leonardo, eight months – it is still a constant struggle.

"Going to work for me is a major headache with childcare arrangements and missing out on my children's childhood," says Ms Gotadoro, who is on income support.

Her partner, Phil Matthews, 26, earns just 16,000 and is moving in to her home in Andover, Hampshire at the end of the month.

Women are retiring 6,600 worse off than men

WOMEN retiring this year will receive an average 6,642 less a year from their pension than men, a report out today reveals.

The average woman retiring in 2009 will draw an annual pension of 13,671, while men will typically receive 20,313 a year, according to Prudential.

The average retirement age is currently 58, according to the insurer's Class of 2009 survey. But 61 per cent of those questioned did not think their pension and other savings would provide enough income for a comfortable retirement.

As a result more people anticipate working past their official retirement age, with women most likely to do so.

Around a fifth of women plan to work beyond 60, Prudential estimated, while just 5 per cent of men are considering working past their 65th birthday.

Susann Klhas, director of Female Financial in Edinburgh, commented: "It is a nightmare for women who are retiring this year."

The pensions gender gap is caused by a combination of career breaks, lower earnings and savings and a rise in the number of divorced women without a husband's pension to support them, according to Karin Brown, annuities director at Prudential.

She said: "It is still a shock to see so many women retiring at such a disadvantage to their male colleagues, despite all we know about the causes of pension discrepancies between men and women.

"When women have children, their pension contributions reduce significantly or stop altogether, and their state pensions often take a hit as well."