Minority ethnic pensioners are '24% worse off' than the rest

The minority ethnic pensioners are around 24% or £3,350 a year worse off than their white counterparts in the UK and there is an even greater divide for women.

The latest report from The People’s Pension said that the total pension received by a minority ethnic woman was 51% less than an average older white male.

It also highlighted the “large inequalities” between people and said there is a sizeable “ethnicity gap” in pensions which is partly due to issues with the state pension system.

The People’s Pension report said the data showed that 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%.

Many of the findings in the study are based on an analysis of a survey of more than 40,000 households carried out by the Department for Work and Pensions.

The gap is influenced by a number of factors, including lower average earnings, variable employment rates and the greater likelihood of minority ethnic workers being self-employed.

“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.

He added: “Understanding the size of the problem and causes is a vital first step in devising appropriate policies for closing the gap.”