Gender and ethnicity pensions gap report
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What women from Britain’s ethnic minority communities say about retirement finances
For years, the pensions industry has highlighted two persistent inequalities: the gender pension gap and the ethnicity pension gap. Individually, each presents a major challenge. But at their intersection – for women from ethnic minority communities – the disadvantage has long been assumed to be especially severe.
Our new research, jointly funded by LCP, Smart Pension, and IGG, provides one of the most in‑depth explorations to date of how these women think about, plan for, and experience later‑life finances.
While the findings confirm significant barriers, they also reveal a glimmer of hope for future generations.
A glimmer of hope on the horizon?
Read the reportScroll down to explore a powerful collection of experiences, insights and direct quotes capturing the realities of retirement planning for these groups
About the research
Conducted in partnership with Opinium, the study draws on:
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12+ hoursof focus groups
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53 womenfrom major ethnic minority communities across the UK
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6 interviewsas follow up, including audio clips
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Representing age groupsSeparate groups for younger (30–44) and older (45–59) women
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Representing heritageContributions from women of Indian/Sri Lankan, Pakistani/Bangladeshi, African and Caribbean heritage
Our key findings
A generational shift that could narrow the gap
Younger women across all groups are:
- More likely to be in paid work than previous generations
- More highly educated
- Less financially dependent on partners or adult children
- More focused on building independence and long-term security
This shift suggests that the pension disadvantage faced by ethnic minority women may be beginning to fall.
I think now the narrative has changed a little bit, but I think if you were at home before and you're solely looking after the kids, you wouldn't even consider pension because your husband's providing for everything. You wouldn't even know what was going through money wise. Your sole responsibility was to look after the children, to cook, to clean and all of that. And it's only now that women are in the workforce, especially from ethnic backgrounds are more like, okay, you know, there's pension, there's savings, there's having my own money and being financially independent.
African, 30-45 group
If we were to take it early, how much would they drop from us? If we took it later, would we get more? Is there any other pension we could pay into? Probably where we're gonna get better money back. If we were to die, where does the money go? Like, does it just get wiped out?
Pakistani / Bangladeshi, 30-45 group
Low trust and limited pension literacy remain major barriers
Across groups, women frequently reported:
- Confusion about how pensions work
- Mistrust of investing, often equating investment with “gambling”
- A lack of clear, accessible guidance
- Difficulty navigating jargon
- Negative perceptions driven by historical scandals and changes to pension rules
Many did not know where their contributions were invested, what happens when they change jobs, or what they might receive at retirement.
A strong hunger for accessible, culturally relevant information
Despite low understanding, interest is high. Women want:
- Plain English explanations
- Bite sized digital content (including video and social media)
- Information in their own community languages
- Guidance delivered by trusted voices, especially those who “look like them”
- Clear, visual examples of contributions and future income
- A central, government led pensions “hub” or app
The desire for knowledge is strong — but information must be placed where people already are, not hidden in complex documents.
I only know all this [about investment] because in the last couple of years I actually bought this book by a Sikh girl called “Girls that Invest”. And literally, it's just like bullet points, everything. And I've taught myself how to invest from this book.
Indian/Sri Lankan, 45+ group
I've got to the point where I just think, you know, what will be, will be. I've got my house. If I need to downsize and get a bit more money from that, then so be it.
Caribbean 45+, group
Wide-ranging later life saving strategies beyond pensions
Many women described a mix of approaches, including:
- Property investment or rental income
- Savings pots, ISAs and Lifetime ISAs
- Gold and other cultural forms of saving
- Community based saving schemes (including Caribbean “pardners”)
- Side businesses or future entrepreneurial plans
- Investments in their home country
- Support from – or for – extended family members
Pensions are often just one piece of a much more complex financial ecosystem.
Big hopes for later life – and big anxieties
Women across groups aspire to:
- Financial independence
- Early or comfortable retirement
- Maintaining or improving their current lifestyle
But they also express:
- Fear, panic or worry about not having enough
- Concern about rising costs of living
- Pressure to financially support adult children or family overseas
- Uncertainty about health, longevity and the affordability of care
Many feel they are not on track and don’t know how to get there.
But the problem I've got is the government keep moving their goalposts. So there was a time where we could happily retire… Now you're expected to work to like 76. So the disparity adding another 16 years. And if you're from a migrant background with high cholesterol and diabetes, you know it's not going to happen.
Indian / Sri Lankan, 30-45 group
What this means for the pensions industry
The findings present a clear call to action for providers, trustees and advisers:
- Understand the diversity of your members - Different ethnic groups have different needs. Tailored approaches matter.
- Communicate in many formats - Written, visual, video, community led, app-based, and in multiple languages.
- Explain the basics — repeatedly - Automatic enrolment hides complexity, but it doesn’t build understanding.
- Put information where people already seek it - Social platforms, community settings, faith centres, GP surgeries, and informal networks all play a role.
- Partner with trusted community voices - Representation matters - both in messaging and in who delivers it.
- Start younger, and start earlier - Education in schools and early adulthood could fundamentally shift long‑term retirement readiness.
Explore the full report: A glimmer of hope on the horizon?
Read now
FAQs
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Women from ethnic minority communities have much lower private pension pots than white British men and women. DWP data shows that women in their late fifties typically hold £81,000 in private pension wealth - just over half the £156,000 held by men. Recent studies suggest this gap is even wider for many women from ethnic minority groups.
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Younger women aged 30 to 44 are more likely to be in paid work, more highly educated, and less financially dependent on family than older generations. Many aim for financial independence and long-term security. These generational changes suggest the pension disadvantage for ethnic minority women may begin to narrow over time.
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Common barriers include low pension literacy, confusion about how pensions work, mistrust of investing, and difficulty understanding technical language. Many women do not know where their contributions are invested, what happens when they change jobs, or how much income they might receive at retirement.
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Use multiple formats and channels, not one standard pack. Combine written, video, social media, and in person sessions. Use trusted community voices where possible. Tailor messages to life stages such as joining a scheme, changing jobs, and approaching retirement. Avoid jargon and assume English may not be a first language for some members.
