Eastern Eye (UK)
Survey shows Asian attitudes to retirement
GROUPS LOOK TO ‘PROPERTY WEALTH AND LOVED ONES FOR FINANCIAL SUPPORT’
PEOPLE from Pakistani, Bangladeshi and Indian backgrounds are more likely to rely financially on support networks, such as friends and family, upon retirement, than white British people, research has shown.
Pension participation among ethnic minorities in UK is lower than average, and non-pension sources are expected to play an important role in funding the retirement of this group, findings by Phoenix Group’s longevity thinktank, Phoenix Insights, said.
As many as 37 per cent of people from Indian or Pakistani and 36 per cent of people from Bangladeshi ethnic backgrounds expect a “comfortable” retirement, compared to 25 per cent among white British people, the survey revealed. Around 38 per cent of people from black Africans also expect a “smooth” retirement life.
However, these expectations do not reflect the current reality in which weekly income for retired Asian and black families are £391 and £412 respectively, compared to the population average of £556, Phoenix Insights said.
Most ethnic minority groups expect an income between £3,000 – £7,000 a year higher than the UK average and aim to retire up to two years earlier.
Director of Phoenix Insights, Catherine Foot, said, “Our findings are clear that ethnic minority groups have different expectations and levels of preparation for retirement, while at the same time demonstrating the need to better understand how providers and government can support these groups so they can enjoy a good quality retirement that meets their financial needs.”
“There are up to 18 million people who are under-saving for retirement. Tackling this problem should be an urgent priority for government, employers, and individuals alike,” she said.
According to the study, awareness of how much money is needed to afford a good standard of living after retirement is vital for ethnic minorities.
When compared to the average retirement income of £25,000 expected by white British people, most ethnic minority groups expect to have a retirement income around 16 per cent higher if they were of a similar age and had similar salaries.
The study also said property wealth is also more likely expected to be drawn upon by most ethnic minority groups than for white British people, reflecting differences in cultural norms and family structures.