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BLACK BRITISH pensioners are going hungry because they do not have enough savings to live on.
Experts say thousands of Black pensioners are facing a food crisis, and they warn of a timebomb in future over the lack of savings of working-age Black women.
This comes after an alarming report by Scottish Widows last month found over half (54%) of Black women don’t have anything saved for retirement.
High unemployment and lower earnings due to systemic racism are blamed for the disparity.
Pensioners and campaigners say the current crisis among elderly Black Britons is leaving them hungry, cold and forgotten.
Kathleen Francis, from Perry Common in Birmingham is due to retire in May this year, and says she doesn’t feel prepared.
Speaking to The Voice, she can barely make ends-meet in the cost of living crisis.
“It’s been hard but I’ve tried to stretch out as much as I can, it hasn’t been easy.
“I am worried because if you’re over a certain amount there are a lot of benefits and help that is cut off from you.”
She says other friends and family members who are approaching retirement are extremely “worried” about their future in Britain, as energy prices and the cost of food continue to rise.
Ms Francis worked in a Jewellery Quarter in Birmingham, for over 34 years and says she was “opted-out of her workplace pension” scheme some time ago.
She said: “We didn’t have an option, we were told it’s best to, so we did.”
Ms Francis, who is 65, said despite her retirement just weeks away, she is still unsure of how much money she will get to live on to pay for her food and heating bills.
“I’m waiting on an adviser to let me know exactly what I am getting and I also heard that it will be taxed, so I still don’t know.
“All I know is the government pension is short because even though I’ve done 45 years it’s still short because I was opted out.”
Looking back on her career, she said her working environment changed and became “toxic” when a new management team took over.
“I worked there for thirty-odd years without a single warning,” she said.
But according to Ms Francis, when new directors took over she began to receive “written and verbal warnings” based on hearsay and about her “attitude”.
She went to her union for help but her mental health deteriorated because of the unbearable atmosphere at the job she once loved.
After dedicating 34 years to the company, she negotiated a settlement deal after being forced out of her job.
She said the agreement was later withdrawn by the new management team and she walked away with just 12 weeks’ pay.
In 2013, she was signed off sick after being diagnosed with Fibromyalgia – a debilitating health condition which causes severe pain and excessive tiredness.
While on sick leave, Ms Francis was forced to rely on benefits for the first time and was receiving Employment Support Allowance (ESA) before being transferred onto Universal Credit.
She said the last nine years have been “difficult” and she is grateful she has been able to manage without taking any money out of her pension.
She added: “I thank God I didn’t take any money out of my pension back then because it would have affected me now.”
Selina Flavius is the founder of Black Girl Finance (BGF), a platform and event that puts Black financial experts and Black women together, to discuss how to address financial inequalities for Black and ethnic minority women.
Speaking to The Voice, she said she was “deeply shocked” by the findings in the report and said a “huge number of women are unprepared” for when it is time to finally stop working.
She said: “If there is a workplace pension available to you, make use of it.
“If you are earning over £10,000 you are auto-enrolled into it and you have to opt out, so for anyone who has opted out consider opting back in as soon as possible.”
“You pay in, your employers also pay in,” she added.
Ms Flavius, from Hertfordshire, said gone are the days where people are guaranteed a “job for life” and many have changed jobs over the years – which leaves thousands of pounds “lost” or unclaimed from past workplace pensions.
She urged people to find the “paperwork” or use pension tracing services to get access to any previous pensions.
She added: “Try and keep track of your current pensions if you are moving jobs in the future.”
The finance coach says it is crucial to include where you would like to live when you retire into your financial plans, and any dreams to go ‘back home’ should also be factored in.
She said: “I know a lot of Black women are self-employed because we tend to move out of the workplace, think about setting up your own pensions for yourself, you can use platforms such as NEST and an app called Get Penfold.”
In recent years, the term generational wealth has become a popular buzzword in the Black community, but what does it actually mean?
Generational wealth is a term referring to all of your financial assets, such as money, investments, property, land that can be passed down from one generation to the next.
Ms Flavius wants “open conversations” about money, investments, retirement and wills “normalised” in Black communities to protect any generational wealth, as circumstances can change very quickly.
She said: “Have conversations with your kids about workplace pensions and make sure they are also enrolled into them.”
The business owner said she “grew up in a household that did not talk about finances at all.”
She added: “Passing on whatever knowledge you are gaining to the younger generation is important, even if we are learning the knowledge late ourselves.
“It can still build that wealth, there is a huge wealth gap in the UK.”
She believes more “safe spaces” for Black women and men to discuss their financial situation are needed to break down the barriers which stop members of the Black community coming forward to seek financial help.
According to leading charity Age UK, more than two million pensioners (18%) living in poverty in the United Kingdom
Worryingly, for older people from Black backgrounds, they are twice as likely to experience poverty compared to white pensioners, according to the charity.
The latest figures show that 3 in 10 (30%) of older people from Black ethnic groups are experiencing poverty in old age compared to 16% of white pensioners.
BLACK ELDERS have less cash in retirement because they are supporting family during their working life.
Ronke Lawal, founder of Ariatu Public Relations, a leading PR company that works with small businesses, start-ups and entrepreneurs, told The Voice there is a hidden “Black Tax” which reduces savings for their own retirement.
She said: “Some of us have to pay a Black Tax supporting our elders who didn’t prepare for retirement.
“A honest conversation needs to be had about that because that is also becoming a bit of a drain for those of us who are starting to actually find a stable footing.
“We are realising our parents didn’t unfortunately do the planning so we are having to support and help them – which is fine because we love our parents and we don’t want to neglect our parents, but what does that do to our financial security?”
Ms Lawal said many Black British elders “thought they were going to go back to their countries of origin” and retire and never planned to stay in Britain but have ended up living here due to ill health or wanting to be closer to their children and grandchildren.
In addition to supporting our elders in the UK, Ms Lawal noted that many Black families also support their extended family ‘Black home’ in Africa and the Caribbean because they “want to uplift our families” in those countries.
She said all of these additional financial commitments could be leaving many Black Brits financially on the “back foot” and without enough money to save for the future.
Ms Lawal used to be a panel member for the National Employment Savings Trust (NEST) – the workplace pension scheme set by the government.
She maintains the Black community needs to be “intentional” and consider doing more than just saving using the “high street bank system” in order to be ready for retirement.
She said: “There are some really amazing investment tools that are out there that I think Black women need to educate themselves on.”
Ms Lawal said there are several financial companies that provide different ISA products, pensions, stocks and shares and investments which can help boost savings.
“We need to educate ourselves and educate each other, I think we need to talk about money and talk about the future,” she added.
Those who have bought a property need to think about the long-term benefits and not just the “liveability” of it now, according to Ms Lawal.
“Are we investing in an area that might rise in value? Those types of questions are useful if we are considering if we are going to sell or remortgage,” she explained.
CHECKING YOUR pension and investments are more important now than ever.
Elizabeth Buko, founder of Wealth From Little, a platform to help Black women change how they think about money, told The Voice that people should be prioritising their retirement plans as we are living much longer.
“Make sure your workplace pension, if you have one, is growing at a rate that will give you the return that you want,” she said.
Ms Buko said people who have taken time out from working to raise children need to check if they are “eligible for the full state pension.”
She said: “If you haven’t put in 35 years of National Insurance contributions or credits then you might not actually get the full state pension.”
She added: “If you are not entitled to a state pension, you may want to think about starting a private pension for yourself.”
Ms Buko added those who have worked for a minimum of 10 years will get a very small weekly state pension, but advises people to research their options and entitlements so they do not get a “shock” when they reach retirement age.
She said there is help available like National Insurance credits which can be applied for, if there were gaps in your employment history from caring for someone or raising children – which applies to both men and women.
Ms Buko said if you are aged between 18 and 39, consider opening a Lifetime ISA, where you can save for a deposit for your first home or use it to save for retirement and the “government adds a 25% bonus” which you “can use towards your pension.”
Owning property could be a “great way to build up rental income which can support you in your retirement years”, according to the financial coach.
Ms Buko said her advice is only a guide and is advocating for the Black community to do extensive research and speak to experts so they can make informed decisions.
According to Ms Buko, people in their 30s and 40s should be ideally investing half of their age into their pension every month.
For example, if you are 40 she recommends putting 20% of your monthly wages into your pension plan.
The financial coach believes one way more mature Black workers can increase their income is by using their specialist skills and extensive experience to either start a business or “charge more” for their services.
She said: “If you are in your 50s and 60s because you have a lot of personal experience and are now a specialist in a particular area, you can monetise it and charge higher fees for your time.”
Ms Buko said people over 50 should be saving approximately 35% of their monthly income into their pensions and believes communities should research if they can dramatically increase their income by switching from an employee to a contractor in their respective field.
She is also warning the Black community to take action now, to prevent a pension poverty crisis with elderly family members and the next generation.
Caroline Abrahams, Age UK Charity Director, said: “Our own studies have shown that for Black older people the risk of poverty in later life is nearly twice as high as for White pensioners.
“We also found that this group has lower average incomes, are more likely to receive means-tested benefits, and less likely to receive private pensions.
“This could be due to their financial position over their lifetime, or if they haven’t been able to build up all the contributions needed for the full State Pension.
“How well off you are in retirement is largely the product of what you have been able to earn throughout your working life.
“Going forward, it’s crucial that Black people are able to access good employment opportunities throughout their working lives so they can develop their careers. Black people need better access to private pensions too, because these make a big difference to your income once you retire.
Ms Abrahams also said the government could strengthen automatic enrolment to increase pension savings as a way to combat pension poverty in Black communities.
She added that “there’s a huge amount that needs to happen to dismantle the barriers that hold Black people back in education and the labour market, the consequences of which can really hit you hard once you retire.”
Ms Abrahams said Age UK will always encourage any older person who’s feeling the pinch in retirement to check if they might be entitled to some extra help.
According to the charity, each year up to £2.4bn of Pension Credit and Housing Benefit go unclaimed.
Ms Abrahams added: “Pension Credit is a really important benefit that can make a big difference. It’s a means-tested, tax-free benefit for pensioners that opens the door to many other potential benefits including:
- A free TV licence (if also over-75)
- Help with Council Tax
- Free NHS dental treatment and help towards the cost of glasses and travel to hospital
- A Cold Weather Payment of £25 when the temperature is 0°C or below for 7 days in a row
- Help with rent
- An extra payment within Pension Credit for carers, worth up to £38.85 a week
“We encourage any older person who is worried about money and/or who thinks they may be entitled to claim benefits to contact us at Age UK for free information and advice on 0800 169 65 65 to check they’re receiving all the financial support available.
“Alternatively, people can visit www.ageuk.org.uk/money or contact their local Age UK for information and advice.”
Age UK says they have a free and anonymous Benefits Calculator on their website which can provide an estimate of the benefits that older people could be entitled to.
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