New 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 business insurance broker Caunce O’Hara Insurance Brokers Ltd (COHIBL) have today launched a new report highlighting the alarming rate of pension opt-outs in the care sector and the urgent further need for action to safeguard the financial future of care workers.

Despite their vital role in supporting some of the most vulnerable people in society, care workers face significant financial inequality now and 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.

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.

Adult social care is the UK’s largest and most essential workforce with 1.5 million people working across the sector. To address this issue, sector-specific solutions are paramount. These must include comprehensive strategies that combine enhanced data collection, targeted financial education initiatives, and policy interventions designed specifically for the care sector.

George Bentham – Head of Employee Benefits, COHIBL said:

“’Reducing Pension Opt-Out Rates in the Care Sector’ highlights a critical issue—too many care workers are opting out of pensions, jeopardising their long-term financial security. Low wages, job instability, and a lack of awareness mean many see pensions as an unaffordable luxury rather than an essential safeguard for their future. If we want to support and retain the people who provide vital care to our communities, we must act and improve financial education, enhance pension participation, and ensure care workers aren’t left behind in retirement.”

Professor Martin Green OBE, Chief Executive of Care England, said:

“Every day, care workers dedicate themselves to supporting others, yet when it comes to their own futures, too many are left financially vulnerable. The reality is stark: low wages and insecure work mean many care staff feel they have no choice but to opt out of pensions to focus on meeting day-to-day living costs, putting them at significant risk of poverty in later life.

This report is a wake-up call. If we do not take urgent action, we will condemn thousands of care workers to financial hardship in retirement, despite their years of service to society. We must do better. Employers need support to help staff engage with pensions, policymakers must introduce reforms that reflect the realities of care work, and the Government must recognise that securing the financial future of care workers is essential to the sustainability of social care itself.

A workforce that cannot afford to retire is a workforce in crisis. This is not just a financial issue—it is a moral one. The people who dedicate their lives to caring for others deserve dignity and security in their own later years.”

If left unaddressed, this trend will deepen financial hardship for thousands of care workers, while making it even harder to attract and retain staff in an already overstretched sector.

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