The Significance of Ethnicity in Pensions: A Quantitative Overview

The research provides an overview of the variation in employment patterns, pension participation and poverty levels at retirement between the white majority and ethnic minorities in the UK and highlights differences between the various ethnic minority groups. Using data from the Family Resources Survey (FRS) from 1997 to 2007 we show the differences that still exist in terms of employment status, income, pen- sion contributions and pension benefits between ethnic minorities and the white majority. We use socio-economic and demographic variables such as age, gender, income, education and family background as indicators of an individual’s future retirement income. Our analysis spans across different age groups including those in the early stages of their working life as well as those aged 65+ who are already in retirement. We show how disadvantage in the labour market affects retirement prospects of ethnic minorities and often leads to poverty in old age. By comparing the first generation of immigrants to Britain with the younger second generation in terms of employment, income and pension contributions, we provide an insight into the current and future attitudes to retirement planning among ethnic minority groups.