Skip to content
Search

Latest Stories

‘Asians get least returns from work pension plans’

BRITISH Asians received the lowest income from work pensions compared to other groups, according to new government figures.

Asians were also the least likely of all ethnicities to get an income from their occupational pension, leading to calls for more awareness to be raised about saving for the future.


White Britons who have re­tired had the highest average gross income at £556 a week between 2016 and 2019, compared to £401 a week for people of south Asian origin.

The Department for Work and Pensions data found that black and Asian families were the least likely to earn an income from a per­sonal pension.

And income from funds saved during their working life went down for Asian elders from £78 a week to £69 over the same period.

Ramesh Verma, founder of the Ekta Project charity in London supporting Asian elders, told Eastern Eye: “I was not told about a private pension or plans for my future, I joined a pen­sion scheme late.

“Those that worked in factories were not given information, so they did not plan; they didn’t know how to plan. The [mentality] is ‘it’s okay, we don’t need it, our family will look after us’ – that is a myth now. There is a false perception that the family will look after us, so they didn’t cater for the future life.”

Verma added: “I tell my members to give, but keep something for yourself. They think it is their duty, giving to their children, grand­children then great grandchildren.”

Last Wednesday (23), it emerged that state pensions will rise next year to protect pension­ers from the economic damage caused by the coronavirus pandemic.

A Bill was unveiled on avoiding a freeze on the state pension next April. It underlines the government’s commitment that the state pen­sion rises every year by the highest of wage growth, inflation or 2.5 per cent.

Pensions secretary Thérèse Coffey said it was “only right” people who are retired had their incomes protected as the government had worked hard to protect all age groups dur­ing the pandemic.

Amjad Malik, a solicitor based in Rochdale, Greater Manchester, said there are several reasons why Asian elders had the lowest in­come from their retirement funds.

He told Eastern Eye: “It is well documented that ethnic workers are more likely to be self-employed. Asians have also been shown to have a lower average earning in comparison to other ethnic groups.

“This highlights an area of concern, sug­gesting that there are systemic flaws in the pension system as a whole. Asian workers tend to resort to self-employed work because of less opportunities in employment akin to their population average in the country and often become unaware of the pension schemes and benefits available to them.

“I urge those who are worried about their pension at whatever working stage they may be at to seek legal advice from pension special­ists or with accountants or the Citizens Advice Bureau to gain clarity on their pension scheme and issues such as automatic enrolment.”

Measures in recent years to boost workers’ retirement savings include auto-enrolment, where a person’s employer and the govern­ment also put in money. Employees are auto­matically put into their workplace pension scheme but cannot access the pot until they are at least 55.

From October, the age to receive a state pension will increase from 65 to 66 for both men and women. It is scheduled to rise to 67 between 2026 and 2028. The full State Pension is £175.20 per week, but depends on a person’s National Insurance record.

Jasmine Birtles, founder of consumer web­site Moneymagpie, said: “The figures do sur­prise me. It’s a stereotype but Asians families are hardworking and successful on the whole and will be doing quite nicely in retirement.

“I do understand the idea that some will continue to work due to their work ethic. There is a cultural element if ‘I will be looked after my children’. There is a generational ele­ment, the view has changed to, ‘I am going to have to look after myself and my children’.

“Parents have realised in recent decades things have turned. In 10 years and 20 years, these figures will be different.”

More For You

marks & spencer

M&S has confirmed that its physical stores remain open and operational

Getty

Marks & Spencer suspends online shopping after cyber attack hits systems

Marks & Spencer (M&S) has paused all online orders following a significant cyber attack that has left the company working to restore its systems. The retailer confirmed the cyber incident earlier this week, after customers began experiencing issues with online services last weekend.

While some systems have been brought back online, others remain offline, forcing M&S to stop taking orders through its website and apps. This includes both food deliveries and clothing purchases. The company issued an apology for the inconvenience, acknowledging the disruption and stating that its team, supported by cyber experts, is working tirelessly to resolve the situation.

Keep ReadingShow less
Pakistan airspace curbs push up costs for Indian airlines

FILE PHOTO: Passengers stand in a queue before entering the Chhatrapati Shivaji Maharaj International Airport in Mumbai. (Photo by SUJIT JAISWAL/AFP via Getty Images)

Pakistan airspace curbs push up costs for Indian airlines

TOP Indian airlines Air India and IndiGo are bracing for higher fuel costs and longer journey times as they reroute international flights after Pakistan shut its airspace to them amid escalating tensions over a deadly militant attack in Kashmir.

India has said there were Pakistani elements in Tuesday's (22) attack in which gunmen shot and killed 26 men in a meadow in the Pahalgam area of Indian Kashmir. Pakistan has denied any involvement.

Keep ReadingShow less
Campbell Wilson

Air India CEO Campbell Wilson steps down as Air India Express chair

Air India CEO Campbell Wilson steps down as Air India Express chair

AIR INDIA CEO Campbell Wilson is stepping down as chair of Air India Express, the airline’s low-cost subsidiary. He will be replaced by Nipun Aggarwal, Air India’s chief commercial officer, according to an internal memo sent on Tuesday.

Wilson will also step down from the board of Air India Express. Basil Kwauk, Air India’s chief operating officer, will take his place.

Keep ReadingShow less
Air India eyes Boeing jets rejected by Chinese airlines: report

Tata-owned Air India is interested in purchasing jets that Chinese carriers can no longer accept (Photo credit: Air India)

Air India eyes Boeing jets rejected by Chinese airlines: report

AIR INDIA is seeking to acquire Boeing aircrafts originally destined for Chinese airlines, as escalating tariffs between Washington and Beijing disrupt planned deliveries, reported The Times.

The Tata-owned airline, currently working on its revival strategy, is interested in purchasing jets that Chinese carriers can no longer accept due to the recent trade dispute. According to reports, Tata is also keen to secure future delivery slots should they become available.

Keep ReadingShow less
Infosys forecasts lower annual growth after Trump tariffs cause global uncertainty

The IT service firm said its revenue would either stay flat or grow by up to three per cent

Getty Images

Infosys forecasts lower annual growth after Trump tariffs cause global uncertainty

INDIAN tech giant Infosys forecast muted annual revenue growth last Thursday (17) in an outlook that suggests clients might curtail tech spending because of growing global uncertainty.

The IT service firm said its revenue would either stay flat or grow by up to three per cent in the fiscal year through March 2026 on a constant currency basis. The sales forecast was lower than the 4.2 per cent constantcurrency revenue growth Infosys recorded in the previous financial year.

Keep ReadingShow less