OVER HALF of Black women in the United Kingdom have no retirement savings, according to a shocking new report.

Research from Scottish Widows’ latest Women and Retirement Report shows that Black women are most likely to face pension poverty in the UK.

According to the report, over half (54%) of Black women don’t have anything saved for retirement, followed by 40% of South Asian women and 35% of White women.

Over  two thirds (68%) of Black women are also concerned that they will run out of money during their retirement years, which drops to 58% among White women.

The worrying statistics have prompted Scottish Widows to partner with Black Girl Finance – a platform for Black women to talk about all things money – to sponsor this years’ Black Girl Finance Festival.

Scottish Widows intermediary distribution director, Ranila Ravi-Burslem said: “Our research shows that Black women, and indeed many women from different ethnic backgrounds, are disproportionately affected by the impacts of pension auto-enrolment thresholds and the tough economic climate which are causing many of them to be in a financially vulnerable position as they reach retirement age.”

Ms Ravi-Burslem said this years’ International Women’s Day is the perfect time to raise awareness about some of the “deep-seated issues.”

Government initiatives – such as lowering the pension auto-enrolment threshold from £10,000 – could make a positive difference, according to the report.

She said: “We’re calling on the Government to remove pension thresholds that unfairly affect women and put education programmes in place to bridge the gap for women from all backgrounds.

“The industry should also do more to support the work of the Money and Pensions Service (MaPS) to help women of all backgrounds to take stock of their finances and understand the importance of saving for later life.

She added: “It’s time to break the cycle of financial injustice and we see this event as a crucial step in the journey to more accessible finance for all.”

The report also found that Black women and women from other ethnic minorities are most likely to rely on cash savings later in life, which experts believe will be severely impacted by the cost of living crisis.

Ethnic minority women are least likely to cite the state pension as a source of income for retirement (including only 32% of Indian women and Black women).

With 1.4 million women currently earning less than £100 a week through the state pension, many women will face additional inequalities in their overall retirement savings.

The research also found that one in five (21%) Black women are ineligible for auto-enrolment pension schemes as they do not meet the £10,000 earning criteria, compared to 17% of South Asian women and just 4% of White women.

Women from Black, Pakistani and Bangladeshi backgrounds also suffer some of the highest rates of unemployment in the UK, with 11% of the former and 12% of the latter out of work versus 4% of the country as a whole – which impacts their ability to save for retirement.

The leading pension and insurance firm will also sponsor this years’ Black Girl Finance Festival, which is led by by author and financial influencer Selina Flavius.

The event will see 100 women of colour gather to listen to a panel of Black and ethnic minority financial experts to discuss what more needs to be done to address financial inequalities for ethnic minority women.

Selina Flavius said: “The findings are clear – urgent action needs to be taken now to ensure that Black women are not unfairly affected by a lack of advice and support while enduring unjust financial challenges.

“The ethnicity pay gap is a key contributor to this, which shows that Black, Asian and minority ethnic women earn lower salaries than White British women, which can undoubtedly have a negative impact on their financial resilience, long-term pensions and investment planning.”

Ms Flavius added the inaugural in-person Black Girl Finance Festival is aiming to give women “the tools to break unbalanced financial norms by empowering them with the knowledge that will help them financially thrive regardless of their circumstances.”

For ethnic minority women in employment, they are significantly affected by the gender pay gap – with women in the UK earning almost £10,000 less than men, as the average male salary is £36,000 compared to the average female salary of £25,000.

The report also found that ethnic minority women in Britain, are also disadvantaged by a broad range of issues which intensify their financial instability.

For example, they are more likely to rely on rented accommodation with 62% of Black women renting compared to one in three (31%) South Asian women and one in four (26%) of White women.

Just 12% of Black women own a home outright compared to 39% of White women.

To mark this year’s International Women’s Day (March 8) Scottish Widows and Black Girl Finance are encouraging people to ‘embrace equity’ and are calling for improved advice to better equip women with the knowledge they need to effectively manage their finances. 

Read the full Women & Retirement report here: scottishwidowsretirementreport.co.uk 

Black Girl Finance Festival, takes place on Saturday, March 11, at the University of Westminster.