BAME people face workplace pension gap

BAME workers are at increased risk of financial hardship when they retire, a leading think tank has claimed following a report showing only a quarter have taken out a workplace pension, well below the national average.

The Social Market Foundation’s Squeezed Out or Opting Out? survey found that 23% of black and 25% of Asian workers had a private or workplace pension, compared to the average of 38%. Bangladeshi workers had the lowest take-up, at 7% while 42% of Chinese people had a pension.

The SMF has called for pensions auto-enrolment to be reformed to encourage more low-income workers to save, including lowering the age of eligibility to 18 and the earnings threshold to £0 so employers contribute “from the first pound, without needing the employee to contribute simultaneously”.