• Putting the equivalent of the average annual cost of raising a child into a pension for 18 years could add around £351,000 to retirement savings
  • Even contributing half that amount could add around £175,500
  • As families emerge from a potentially expensive summer, ‘Dual Income, No Kids’ households may have greater financial headroom

As summer draws to a close and many families take stock of the cost of the summer holidays and back-to-school spending, new analysis from the retirement specialist Standard Life suggests that some dual-income households without children, often referred to as 'DINKs' (Dual Income, No Kids), could build an additional £351,000 in retirement savings by directing the equivalent cost of raising a child into their pension. 

This analysis comes as family patterns continue to evolve, with the fertility rate in England and Wales falling to 1.39 children per woman in 20251. For DINK households, lower child-related spending can mean greater flexibility in how disposable income is allocated, creating opportunities to prioritise longer-term financial goals such as retirement saving.

What if the cost of raising a child went into a pension instead?

To illustrate the long-term impact, Standard Life compared the average estimated cost of raising a child, around £250,000 by age 182. Spread evenly across 18 years, this equates to approximately £13,900 a year. Standard Life calculations show that someone who contributed an additional £13,900 to their pension each year for 18 years from the age of 30 could build a pension pot worth approximately £603,000 in today's prices by age 683. 

This is around £351,000 more than someone who also started saving at age 22 on a salary of £30,000 a year and contributed only the minimum auto-enrolment amounts (5% employee and 3% employer contributions) throughout their working life, but did not make any additional contributions from age 30.

Even contributing half this amount (£6,950 a year) could make a significant difference. Standard Life calculations show this could add £175,500 to a retirement fund in today's prices, resulting in a total savings pot of approximately £428,000 by age 68, allowing for inflation.

Potential retirement funds
Retirement fund of someone who started working at the age of 22 on a £30,000 salary with auto enrolment contributions of 8% (5% employee, 3% employer) Additional contribution of £13,900 from age 30 until 48 Additional contribution of £6,950 from age 30 until 48
£252,000  £603,000 £428,000
  +351,000 +£175,500

*assuming 3.50% salary growth per year, and 5% a year investment growth. Figures allow for 2% inflation. Annual Management Charge of 0.75% assumed. The figures are an illustration and are not guaranteed. Earning limits not applied.

 

September can be a useful time to take stock of your finances. The summer holidays are over, routines are settling back in, and many people will be thinking again about what they are spending, saving and putting aside for the future.

For people without child-related costs, there may be periods when there is a little more flexibility in the household budget. It might not be realistic to put the full equivalent cost of raising a child into their pension every year, but these figures show just how powerful additional saving can be when you give it time to grow.

It doesn’t have to be all or nothing either. Whether you have children or not, putting a bit more away when you can, perhaps after a pay rise, once a debt has been cleared or simply at a point when you have more disposable income, can make a meaningful difference over the course of your working life, helping to build greater financial security in later life. The key is finding a balance that lets you enjoy your money today while making sure some of it is working for your future too.
 

- Emma Furlonger, Managing Director for Workplace Pensions

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Notes to editors:

  1. Conception and fertility rates - Office for National Statistics
  2. The Cost of a Child reports | CPAG 
  3. Calculations assume the following: 
Starting salary £30,000
Employer Contribution 3.00%
Employee Contribution 5.00%
Investment Growth 5.00%
Salary Growth     3.50%
Inflation      2.00% 
Annual Investment Cost      0.75% 

Calculations are intended only for the sole purpose of providing an illustration regarding the projection of savings and pensions. They should not be used with the intention to give an accurate representation of real-world outcomes 
 

About Standard Life

Standard Life is a retirement specialist focused entirely on retirement saving and income. We are proud to manage around c£317bn in assets on behalf of our 12 million customers, and we champion the belief that everyone's journey to and through retirement can be better.  

With our focus entirely on retirement savings and income we want to be the business that people trust to guide their retirement journey, helping our customers achieve better outcomes and greater financial security in later life. 

As a FTSE 100-listed group we are using our size, expertise and influence to shape the world our customers will retire into, and are committed to helping three million more customers by 2035, take action towards a better retirement.  

Standard Life is a responsible investor with a clear commitment to supporting a more sustainable future. The Group has achieved its net zero goal across its emissions for 2025 and is working towards net zero investment portfolios by 2050 or sooner.

Standard Life is recognised as a leading employer, with long-standing accreditation as a Living Wage Employer, Living Pension Employer and Carer Positive Exemplary Employer and in 2025 became one of Britain’s Most Admired Companies in 2025.