ONE THIRD (30%) of Black women in the UK  say they plan to reduce their working hours instead of retiring, a new survey has found.

Research from Scottish Widows has revealed that women from Black and minority ethnic backgrounds are underprepared for retirement and are opting out of pension schemes they don’t think they can afford, preferring to save money in other ways.

The research found that half of Black women (52%) and two in three (66%) Asian women share concerns about running out of money in retirement.

Almost one in six (14%) Black women and 15% of Asian women are opting out of paying into a pension pot. This compares to just 5% of White British women. When asked why, Black and Asian women cited a lack of trust, not being able to afford it and preferring to save money in other ways as key reasons.

The research also found that one in six (16%) Black women and 20% of Asian women are juggling more than one job. This compares to only 9% of White British women working multiple jobs.

Scottish Widows partnered with Black Girl Finance for an event in London earlier this month aimed at addressing these challenges.

Personal finance influencer Selina Flavius, one of the key people behind Black Girl Finance said the goals of the event were to break down barriers to financial literacy and provide women with the tools they need to feel comfortable and confident in future financial planning. 

“I started the Black Girl Finance platform to address the stark realities research like this has highlighted – Black Women are opting out of workplace pension schemes due to a lack of trust, low awareness of auto-enrolment, and a lack of education and empowerment in financial decision-making” said Flavius.

“Working with Scottish Widows, the Black Girl Finance Festival will provide an opportunity to spotlight some of these financial challenges and a chance to collaborate on solutions.”

Scottish Widows’ Protection Director Rose St Louis, one of the panelists at the event said: “As we dig deeper into our research, it’s clear women from underrepresented communities face disproportionate challenges when it comes to financial future planning.

“There are lots of factors contributing to this, including confusion around pension auto-enrolment thresholds, the economic climate and shared concern about running out of money in retirement.”

St Louis added: “Recognising these issues, pension providers and the wider financial services industry has a crucial responsibility to drive trust with ethnically diverse communities to ensure they have the tools and information they need to plan for retirement.”