Care England and Caunce O’Hara Insurance Brokers Ltd launch landmark report on the worrying increase in social care pension opt-out rates amid growing workforce concerns

Care England, the leading voice for adult social care providers, and Caunce O’Hara Insurance Brokers Ltd (COHIBL) have launched a white paper highlighting the alarming rate of pension opt-outs in the care sector and the urgent need for action to safeguard the financial future of care workers.

While auto-enrolment (AE) has boosted pension participation across industries, care workers face financial challenges leading to higher opt-outs. Many are the main earners in their families, earn low wages, work unstable hours, and are forced to prioritise immediate financial needs. A lack of awareness about pension benefits and a predominantly female workforce balancing caregiving responsibilities further contribute to low participation.

Unlike the broader Healthcare sector, which reports higher pay and enhanced benefits, social care workers experience lower wages, more part-time roles, and fewer employee benefits. Grouping social care data with healthcare presents an overly optimistic picture, masking the financial struggles of care workers. More granular data is needed to assess their long-term financial prospects accurately for social care workers.

With over 1.5 million employees, adult social care is the UK’s largest and most essential workforce. Yet, despite their vital role in supporting some of the most vulnerable people in society, care workers face significant financial insecurity in retirement. High rates of pension opt-outs mean many will be left without adequate savings in later life, forcing them to rely solely on state support.

The white paper, Reducing Pension Opt-Out Rates in the Care Sector, explores the challenges preventing care workers from engaging with pension schemes, including:

• Financial pressures – Low wages and zero-hours contracts force many workers to prioritise short-term survival over long-term savings.
• Lack of awareness – Many care staff are unaware of the benefits of employer contributions or the financial risks of opting out.
• Sector-specific barriers – The predominantly female workforce, high turnover rates, and irregular shift patterns make pension engagement more difficult.

Despite the success of automatic enrolment (AE) in improving pension participation across other industries, the care sector continues to experience disproportionately high opt-out rates. If left unaddressed, this trend will deepen financial hardship for hundreds of thousands of care workers, while making it even harder to attract and retain staff in an already overstretched sector.

A Call for Urgent Action

This White Paper sets out clear recommendations for reducing pension opt-outs, including:

• Better financial education – Employers and policymakers must improve awareness of pension benefits and provide tailored support.
• Policy reforms – Adjusting pension schemes to reflect the realities of care work, such as low pay and flexible working arrangements.
• Employer engagement – Ensuring providers have the tools and knowledge to help staff make informed financial decisions.

With the social care workforce already struggling with recruitment and retention, ensuring that care workers have access to long-term financial security is not just an ethical imperative—it is a necessity for the sector’s future.

The press release is available here

The full paper, Reducing Pension Opt-Out Rates in the Care Sector, is available here.

Check out COHIBL and what they do here

If you have any questions, please contact Tom Pisani, Policy Officer (tpisani@careengland.org.uk).