Black women are 30 per cent more likely to reduce working hours instead of retiring, compared to 22 per cent of Asian women and 21 per cent of white women.
Research from Scottish Widows revealed the ongoing disparities in retirement planning for women, highlighting a pension awareness gap.
Black and Asian women are concerned about having a comfortable retirement and have a lack of trust in pension schemes.
Some 52 per cent of Black women and 66 per cent of Asian women are worried about running out of money in retirement.
While 14 per cent of Black women and 15 per cent of Asian women are opting out of paying into a pension pot compared to just five per cent of white women.
Reasons for this included 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 16 per cent of Black women and 20 per cent of Asian women are juggling more than one job, compared to 9 per cent of white women.
Scottish Widows protection director, Rose St Louis, 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.
“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.”
Scottish Widows has partnered with Black Girl Finance to address the challenges facing women from underrepresented backgrounds.
Black Girl Finance, led by Selina Flavius, aims to break down barriers to financial literacy and provide women with the tools they need to feel comfortable and confident in future financial planning.
Flavius added: “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.”
alina.khan@ft.com
