Childless couples can double the size of their pensions by putting the money saved from raising a family into their retirement fund.
The average cost of raising a child has risen to £166,000, or £9,222 a year if divided equally over the years up to age 18.
The rising cost of living has seen a rise in “double income, childless” couples, the so-called Dinks, and the latest figures show the fertility rate has fallen to its lowest level on record with an average of 1.44 children per woman.
Research shows that if these couples saved extra money, they could significantly increase their retirement fund.
Research shows that if these couples saved extra money, they could significantly increase their retirement fund.
Figures from pension provider Standard Life show that an employee earning an average salary of £25,000 a year and paying the minimum 5 per cent auto-enrolment contribution will build up a pension pot of £208,000 by the age of 68.
If they had no children and put the £9,222 a year normally spent on raising a family into their fund, they could add another £226,000, assuming annual salary growth of 3.5 per cent and investment gains of 5 per cent.
They could almost double the value of their pensions to £434,000 each.
Standard Life’s Dean Butler says: “Idiots who choose to save more could also get used to maintaining their level of savings as they go through life, continuing to grow their funds and prospects in retirement.”
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