Skip to content
Search

Latest Stories

Pension size of ethnic minorities less than half of white Britons’: Research

The disparity is driven by insufficient disposable income, mistrust and risk aversion

Pension size of ethnic minorities less than half of white Britons’: Research

ETHNIC minorities in the UK are significantly under-pensioned compared to white British people, according to new research.

Legal & General Investment Management (LGIM) found that at £52,333, the average minority ethnic person’s pension pot was less than half the size of the average white British person’s £114,941.

Insufficient disposable income exacerbated by the cost-of-living crisis, misconceptions and risk aversion drove the ethnicity pension gap, the study comprising more than 4,000 participants revealed.

Some 31 per cent of the ethnic minority respondents said a lack of enough spare income prevented them from investing into a pension, compared to 20 per cent white Britons who cited this as the reason.

A little more than a quarter (26 per cent) of ethnic minority people said they did not want to take risk with their money while just seven per cent of white Britons showed the risk aversion.

Some ethnic minority participants perceived pensions as riskier than alternatives such as cash and property.

Some people feared that the structure of their pension was “corruptible”.

The Covid-19 pandemic and the cost-of-living crisis hit lower-paid ethnic minority respondents harder, the research found.

A fifth of the ethnic minority respondents stated the cost-of-living crisis was preventing them from paying into a pension as against 13 per cent of white British people.

Seven in 10 respondents from ethnic minority backgrounds expressed concern about the elevated interest rates versus six in 10 white Britons.

According to the findings, many missed out on one of the most tax-efficient ways to save for their future due to the “ethnicity pay gap”.

Minority ethnicities were more likely than their white counterparts to trust the media and social media for financial advice. But similar proportions of both groups - 59 per cent of ethnic minorities and 58 per cent of white Britons - said they trusted banks for the purpose.

LGIM’s head of defined contribution, Rita Butler-Jones, said the uncertainty of the past few years had exacerbated “financial, social and health inequalities across British society.”

“While we are beginning to understand the drivers of the ethnicity pensions gap, it is clear the factors affecting the gap – including pay levels, lack of familiarity and knowledge, pensions’ perceived lack of relevance, and expectations of the duties and activities of the state – have been compounded by instabilities caused by Covid, the cost of living crisis and the continuing challenges for all women associated with the gender pensions gap,” she said.

LGIM research report comes months after the Social Market Foundation think-tank found that people from ethnic minorities were much less likely than white Britons to save into a pension scheme.

More For You

Sri Lanka forms committee to address UK sanctions
Anura Kumara Dissanayake

Sri Lanka forms committee to address UK sanctions

THE Sri Lanka government on Wednesday (2) formed a committee to recommend measures regarding the UK's decision to impose sanctions on three former military commanders who led the campaign that crushed the Liberation Tigers of Tamil Eelam (LTTE) in 2009.

Health minister Nalinda Jayatissa told reporters that foreign minister Vijitha Herath, justice minister Harshana Nanayakkara and deputy minister of defence Aruna Jayasekara would comprise the committee that would consult experts for the purpose.

Keep ReadingShow less
Gujarat-blast-ANI

The blast caused the factory’s concrete roof to collapse, scattering debris and body parts across the area, officials confirmed. (Photo: ANI)

ANI

Death toll rises to 21 in Gujarat firework factory explosion

AN EXPLOSION at an illegal firecracker factory in Gujarat's Deesa town killed 21 people and injured several others on Tuesday, officials said.

The blast caused the factory’s concrete roof to collapse, scattering debris and body parts across the area, officials confirmed.

Keep ReadingShow less
Child benefit payments set to rise for UK families

Child benefit, normally paid every four weeks directly into bank accounts, has undergone significant changes in recent months (Photo: Getty Images)

Child benefit payments set to rise for UK families

MILLIONS of British families are set to receive a financial boost as child benefit payments increase from April 7, according to HM Revenue and Customs (HMRC).

From next week, parents will receive £26.05 per week for the eldest or only child, amounting to £1,354.60 annually - up from the current rate of £25.60. For each additional child, payments will rise to £17.25 weekly, totalling £897 per year - an increase from the present £16.95 rate. This represents a 1.7 per cent increase across all payment categories.

Keep ReadingShow less
Anant Ambani Walks 140 Km in Spiritual Tribute on 30th Birthday

Anant’s padyatra is a reflection of the larger cultural fabric of India

Getty

Anant Ambani embarks on a 140-kilometer spiritual journey on foot to celebrate 30th birthday

Anant Ambani, a director of Reliance Industries Limited and a prominent figure in Indian industry, has chosen a unique and spiritual way to mark his 30th birthday. As part of his celebrations, he is currently undertaking a padyatra—a traditional pilgrimage on foot—from Jamnagar to Dwarka, covering a distance of approximately 140 kilometres. The journey reflects his devotion to Lord Dwarkadhish, the presiding deity of the Dwarkadhish Temple in the city of Dwarka.

Anant began his journey from his family’s residence in Moti Khavdi, Jamnagar, and has been progressing steadily for the past five days. Walking an estimated 10-12 kilometres each night, he travels under the protection of Z+ security and local police, ensuring his safety during this significant journey. The padyatra is expected to take between seven to nine days in total, with plans to conclude at the Dwarkadhish Temple in time for his birthday on April 10.

Keep ReadingShow less
New TB action plan proposed as cases surge

Government urged experts to come forward to help draw up a new five-year TB action plan. (Photo: Getty Images)

New TB action plan proposed as cases surge

BRITAIN on Wednesday (2) urged health experts and sufferers of tuberculosis (TB) to come forward to help draw up a new five-year action plan as it deals with record rises in the disease.

In 2023, England recorded its largest annual increase (11 per cent) in cases since enhanced surveillance began in 2000.

Keep ReadingShow less