As per a new retirement report by UK based insurance firm, Scottish Widows, there lies a great amount of disparity, within the South Asian community when it comes to retirement wellbeing and comfortable retirement.
The report revealed that a third of South Asian communities in UK are on track towards a comfortable retirement in UK. While this stat, might look motivating from the outset. A closer watch presents a different picture.
The report, through its survey reveals that 63% of the Indian community in UK will be comfortably retiring, which is almost double of the national average, which stands at 36%.
However, when it comes to Pakistani and other South Asian communities, the number stands at 35% and 39% respectively, just close to the National average.
The report further reveals that the Indian community is looking at a high retirement income at £19,000 compared to the national average of £15,000. While Pakistani and other South Asian community, look at an income of £11,000 and £15,000 respectively.
The Scottish Widows study points out at a behavioural pattern as a reason for Indian community performing much better than their South Asian counterparts.
“One of the main reasons those in the Indian community are projected to be saving more is a much greater propensity to be accumulating long-term savings outside of a pension. On average, those from the Indian community expecting to have non-pension savings will have nearly £9,500 of income. This compares to nearer £3,750 for those in the White British community,” the report states.
“A good lifestyle projected are particularly contingent on their partners mirroring their savings behaviour,” it adds.
Income also plays a huge role in deciding whether one will have a comfortable retirement or not.
As per ‘Income distribution’ statistics published by the Office of National Statistics, the Indian community has the highest income in UK, only after the Chinese community. While the Pakistani and Bangladeshi community remain at bottom two.
Speaking on the report, Ranila Ravi-Burslem, Intermediary Distribution Director at Scottish Widows, said “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 the 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.”
