Ethnic and Gender Disparities in Pension Receipts and Savings in Later Life

ABSTRACT

Pension incomes in later life are determined by the combination of eligibility rules and an individual's life‐course trajectory, including their contributions to pension schemes. Existing research documented that older individuals from minority ethnic communities have a lower likelihood of receiving pension benefits compared to White British persons. However, the current literature lacks comprehensive research in addressing disparities in pension receipts and nonpension savings by ethnicity, migration status and gender in the current pension policy context. Using UK Household Longitudinal Study data from 2009 to 2024, this paper addresses these gaps and adds to our understanding of trends and patterns of pension receipts by ethnicity, migration status and gender. Using the latest wave, we assess the role of ethnicity, migration status, demographic, socioeconomic, health and subjective well‐being factors in explaining older individuals' propensity to receive state, workplace and private pensions, and pension credit and the expectation to use nonpension savings/investments for retirement. Our findings indicate persistent ethnic and gender gaps in receipts of state, workplace and private pensions, and Pension Credit receipt and in expectations to use nonpension savings in retirement, with older individuals from Indian, Pakistani, Bangladeshi and Other White communities faring worse than other ethnic groups, while first‐generation migrants and those in difficult financial situations are less likely to receive workplace pensions. The findings point to the need for more inclusive pension policies for future generations of retirees from diverse backgrounds.