Pension boost for ‘Dinks’: Couples without children can double the size of their retirement pots

Couples without children can double the size of their pensions if they put the money saved on raising a family into their retirement fund.

The average cost of raising a child has increased to £166,000, or £9,222 a year if split evenly over the years until they are 18.

The growing cost of living has seen an increase in ‘dual income, no kids’ couples – so-called Dinks, with the latest figures showing the fertility rate has dropped to its lowest on record at an aveage of 1.44 children per woman.

Research shows that if these couples were to save the extra cash, they could significantly boost their retirement fund. 

Figures from pension provider Standard Life show that an employee earning an average salary of £25,000 per year paying the minimum auto-enrolment contribution of 5 per cent will amass a pension pot of £208,000 by the age of 68.

If they didn’t have children and directed the £9,222 a year usually spent on raising a family into their pot, they could add another £226,000, assuming 3.5 per cent annual salary growth and 5 per cent investment gains. 

It could nearly double the value of their pension pots to £434,000 each.

Dean Butler, of Standard Life, says: ‘Dinks choosing to save more might also find themselves getting used to maintaining their level of savings as they move through life, continuing to boost their pots and prospects in retirement.’