Overworked and underprepared: Black women don't ever expect to retire

Black women face the prospect of never retiring

• One in three Black women (30%) and one in five (22%) Asian women plan to reduce working hours, instead of fully retiring 
• Black and Asian women are opting out of pension schemes they don’t think they can afford 
  
• Moreover, half of Black women (52%) and two in three (66%) Asian women share concerns of running out of money in retirement.
  

Black women (30%) are more likely to reduce working hours instead of retiring, compared to 22% of Asian women and 21% White British women.  

Research from Scottish Widows has revealed the ongoing disparities in retirement planning for women, with a pension awareness gap, concerns about comfortable retirement and lack of trust in pension schemes coming to the forefront of the concerns for Black women and Asian women.  

With half of Black women (52%) and two in three (66%) Asian women sharing concerns of running out of money in retirement, the financial gender pay gap persists. Women from ethnic minorities are facing significant challenges throughout their financial journey, from employment opportunities to retirement savings.  

Almost one in six (14%) Black women and 15% of Asian women are opting out of paying into a pension pot. This compares to just 5% of White British women. When asked why, Black and Asian women cited a lack of trust, not being able to afford it and preferring to save money in other ways as key reasons. 

The research found that one in six (16%) Black women and 20% of Asian women are juggling more than one job. This compares to only 9% of White British women working multiple jobs. 

Scottish Widows is partnering with Black Girl Finance for an event in London this weekend (Saturday March 16), which will be attended by around 200 Black and ethnic minority women, to address these challenges. 

Black Girl Finance, which is led by personal finance influencer Selina Flavius, aims to break down barriers to financial literacy and provide women with the tools they need to feel comfortable and confident in future financial planning.  

Selina commented: “I started the Black Girl Finance platform to address the stark realities research like this has highlighted - Black Women are opting out of workplace pension schemes due to a lack of trust, low awareness of auto-enrolment, and a lack of education and empowerment in financial decision-making. 

“Working with Scottish Widows, the Black Girl Finance Festival will provide an opportunity to spotlight some of these financial challenges and a chance to collaborate on solutions.” 

With ethnic minority women are disproportionately affected by the pension auto-enrolment threshold. With a higher proportion of Black and Asian women working multiple jobs, auto-enrolment doesn’t take into account total income from more than one job. 

Scottish Widows’ Protection Director Rose St Louis will be one of the panelists at the Black Girl Finance festival commented ahead of her keynote: 

“As we dig deeper into our research, it’s clear women from underrepresented communities face disproportionate challenges when it comes to financial future planning. There are lots of factors contributing to this, including confusion around pension auto-enrolment thresholds, the economic climate and shared concern about running out of money in retirement.  

“Recognising these issues, pension providers and the wider financial services industry has a crucial responsibility to drive trust with ethnically diverse communities to ensure they have the tools and information they need to plan for retirement.” 

For more information about the Black Girl Finance Festival, visit Blackgirlfinancefest.co.uk. To access the full Women & Retirement report, visit Women & Retirement Reports | Scottish Widows

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