Thursday, January 30, 2020

The Pension Gap

Minority ethnic pensioners were, on average, 24% – or £3,350 a year – worse off than other people their age.

A minority ethnic woman is 51% less than that of a typical white older man, according to a report that highlights “large inequalities” in UK retirement incomes.

The pension income inequality was a particular issue for Asian ethnic groups – where the gap was 30% – and for the “black African, Caribbean or black British” groups, where the figure was just under 27%.

The ethnicity gap was driven by several factors, including lower average earnings, variable employment rates and the greater likelihood of minority ethnic workers being self-employed. Part of the problem was that there was an annual state pension income gap of about £600 for ethnic minorities, they added. For example, DWP data showed that while 98% of white pensioner households received the state pension, it was 85% for Asian pensioner households.

“Our report highlights large inequalities, which will become starker as the growing ethnic minority population reaches retirement age,” said Gregg McClymont, director of policy at The People’s Pension.

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