Measuring the ethnicity pensions gap
By The people´s pension
Last year The People’s Pension examined in detail the drivers of the yawning gap in pension income between women and men, as the first part of a series examining the UK’s ‘under-pensioned’. Our second report focuses on another dramatically underpensioned group: ethnic minorities. New calculations by The People’s Pension reveal that the UK’s overall ethnicity pension gap – the percentage difference in pension income for pensioners who belong to an ethnic minority group compared to pensioners of a White ethnicity – was 24.4% in 2017-18, or £3,350 a year. From a gender perspective the gap is even greater. On average the gap in pension income between a female pensioner from an ethnic minority group and a male pensioner from white ethnic groups is 51.4%. The People’s Pension has produced this report in order to highlight the poorer pension outcomes among ethnic minorities and to make a case that pensions policy should address this problem, while recognising there are also wider labour market aspects beyond the control of pensions policy.
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