EIGHTY-NINE PER CENT of adults nationwide underestimate the financial value of stay-at-home parents according to Royal London Ireland.
The provider of life insurance and pensions surveyed 1,000 adults and only 11% valued the cost to employ someone to perform the duties of a stay-at-home parent at over €50,000.
RLI also compared the survey findings with its own research into the cost of employing someone to carry out the various roles played by a stay-at-home parent.
It calculated the estimated annual salary of a stay-at-home parent to be €57,140 — up from an estimated €54,590 in 2023 and €40,560 in 2015, when it first undertook the same research.
In the latest Stay-at-Home Parent Survey, respondents estimated the potential salary of a stay-at-home parent to be €32,340, reflecting a 5.9% increase from the 2023 estimate of €30,547.
Almost three times as many women as men accurately estimated that the cost would exceed €50,000.
According to the most recent census data, there were 272,318 stay-at-home parents in 2022.
Ninety per cent of stay-at-home parents were women, reflecting traditional care giving roles.
Karen O’Flaherty, Senior Propositions Executive of Royal London Ireland commented,
“I believe the role of the stay-at-home parent is greatly appreciated by many people. However, when it comes to gauging their financial “worth”, there remains a significant 43pc gap between people’s perception of the homemaker’s economic contribution and the reality of the likely cost if they had to pay someone to carry out the jobs a homemaker does on a day-to-day basis. Stay-at-home parents have a diverse range of responsibilities – including childcare, household management, budgeting, emotional support, and handling children’s transportation needs - yet the full value of their work often goes unrecognised”.
Karen O’Flaherty added:
“The fact that those aged 45-54 are more likely to recognise the true value of the stay-at-home parent is significant. This age group has likely experienced firsthand the range of tasks and sacrifices involved in this role.”
Royal London Ireland analysed the typical daily tasks and responsibilities of stay-at-home parents and researched the cost of employing someone to do these jobs, based on current wage data. Responsibilities include cooking, cleaning, driving children to activities.
The calculations reveal that the yearly cost to employ someone to handle the duties of a stay-at-home parent would be an estimated €57,140.
Royal London Ireland has conducted this research since 2015, revealing increases in the estimated value of stay-at-home parent duties almost each survey year.
Karen O’Flaherty continued:
“Although the monetary value of the stay-at-home parent, as estimated by our survey respondents, has increased seven out of eight years of our survey, so too has the actual estimated cost of employing someone to fulfil this important role. And each year, our surveys have shown that people typically estimate an annual salary that falls well below the likely cost to hire someone for the role. Unpaid labour, which is disproportionately shouldered by women, is often not factored into household financial plans when it comes to looking at things like life assurance and pensions”.
Ms. O’Flaherty concluded,
“Each year, we conduct this research to highlight the tangible value of the responsibilities stay-at-home parents shoulder. It’s crucial that the role of a stay-at-home parent is recognised, not as an invisible contribution but as an essential job that deserves both support and consideration in financial planning. While money can never replace a parent, having adequate Life Cover, Multi-Claim Protection Cover and/or Specified Serious Illness cover in place can help provide families with a financial safety net to meet some of these parenting costs, should the unthinkable happen. Your Financial Broker can help you get an understanding of the level of financial protection you might need.”
