Is retirement income at risk? A study of economic conditions amongst ethnic groups in the UK

The research examines employment patterns, pension participation and retirement incomes for ethnic groups in the UK and highlights differences in their economic conditions. We use data from the Family Resources Survey (FRS) and show that there still are important differences in terms of employment, income, pension contributions and benefits between ethnic minorities and the white majority. We use socio-economic and demographic variables to explain differences in individuals’ retirement income. We show how disadvantages and uncertainty in life pre-retirement affect retirement prospects of ethnic minorities. By comparing the white control group to ethnic minorities in terms of employment, income and pension contributions, we provide an insight into the retirement behaviour of ethnic groups and show that their welfare post-retirement may be increasingly at risk with the new trend towards Defined Contribution pension schemes.