Over a third of South Asian communities in the UK are on track for a comfortable retirement
Scottish Widows’ latest Retirement Report reveals that over a third of South Asian communities in the UK are on track for a comfortable retirement.
As the UK celebrates South Asian Heritage Month (running from 18th July – 17th August), the latest figures from Scottish Widows’ annual study of the nation’s retirement preparations provide some cause for optimism, particularly for Indian communities.
Founded in 1815, Scottish Widows is part of Lloyds Banking Group, the UK’s largest digital bank and financial services group. With around £190bn assets under administration and 6 million customers, Scottish Widows’ award-winning product range includes workplace and individual pensions, annuities, life cover, critical illness, income protection as well as savings and investment products.
The report, however, uncovers disparities in retirement planning across South Asian communities. Only 35% of respondents in the Pakistani community and 39% of those in other Asian communities are currently on track for a comfortable retirement lifestyle. These figures are broadly consistent with those of White British (36%), White non-British (30%), and Black (35%) communities.
The report’s National Retirement Forecast (NRF) establishes the clearest picture ever captured of the UK’s future retirement landscape, using the Pension and Lifetime Savings Association (PLSA)’s ‘Retirement Living Standards’ levels to calculate the quality of lifestyle that people are set to achieve when they stop working.
The Indian community has a positive outlook on retirement which can be attributed to several factors, including higher levels of non-pension savings, a greater likelihood of being married or in a civil partnership, an expectation of partner contributions to retirement incomes, and lower levels of debt compared to other underrepresented communities.
Ranila Ravi-Burslem, Intermediary Distribution Director at Scottish Widows, adds, “As a South Asian woman, it is uplifting to see positive outcomes within the Indian community. Though, it is clear that not all South Asian communities in the UK are in the same position when it comes to retirement planning, with the Indian community faring much better than Pakistani community and other Asian communities.
“The data from the Office of National Statistics reveals the disparities in earnings of those within the Bangladeshi and Pakistani communities, earning 16.9% and 20.2% less than their white counterparts. Highlighting the need to delve deeper into workplace experiences, classism and social mobility in these communities to truly understand the challenges faced.
“South Asian Heritage Month is an important reminder of the pressing need to increase our efforts in providing financial education, support and tools within underrepresented communities. By doing so, we can work towards building comfortable and secure retirements for all.”