Over half (59 per cent) of the Black community in the UK is concerned about running out of money in retirement, with a quarter (25 per cent) stating that they do not have a personal or workplace pension, according to research from Scottish Widows.

Its Retirement Report found evidence that people from Black communities are more likely to opt for non-pension savings options, such as cash assets, which Scottish Widows warned can be a risky strategy, particularly during times of higher inflation.

In addition to this, Black African, Black Caribbean or other Black ethnic groups are less likely to have a state pension (36 per cent), compared to their White British counterparts (58 per cent).

The report also highlighted significant contrasts between the Black community and other groups in response to the rising cost of living, noting that 16 per cent of Black adults have said they will cut back on their pension contributions, compared to 11 per cent of White Brits and 14 per cent of Asian groups.

However, the Black community also reported a larger strain from rising living costs, with nearly half (48 per cent) reporting a greater level of concern over the cost of living, compared to just over a third of their White counterparts (36 per cent).

Scottish Widows head of policy, Pete Glancy, stated: “Our research highlights inequalities in terms of pension provision across Black communities, and the increased challenge of making ends meet today and saving for the future.

“Those with the best pension provision have spent much of their careers in well-paid, full-time jobs.

"Those with the poorest pension provision tend to have intermittent, low-paid employment or earn their wages from multiple jobs, which means they can lose out on being automatically enrolled in an employer led pension scheme.

"Black communities appear to be over-represented in the latter category, which can impact on the accumulation of private pension provision and state pension entitlement."

Pennies to Pounds founder, Kia Commodore, said that the statistics in the report about Black communities were "shocking but sadly, unsurprising", explaining that the rise in the cost of living has undoubtedly affected the choices that many people are making.

“In my experience, there are a few reasons why the Black community may not be as inclined to save for a pension," Commodore continued.

"One is that Black employees typically earn less than their White British counterparts and do not always have the additional disposable income to save into a pension.

"There is also a feeling of distrust towards financial institutions which, in-turn, can impact the financial decisions made by some members of the Black community.”

In light of these concerns, she emphasised the need for a "real push" for an increase in understandable and accessible education from the financial services sector, particularly for different communities.

"This education will help to highlight the challenges that may occur from over-reliance on non-pension savings and highlight the benefits of both personal and company pension funds," she stated.

Share Story: