Who we are Researching Older Black and Minority ... - Runnymede Trust

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unfair case of double taxation. Watch the film at: • http://tinyurl.com/7nc2bjz, or. • http://www.youtube.com/runnym
Intelligence for a multi-ethnic Britain

Who we are

KEEP IN TOUCH

Runnymede is the UK’s leading independent race equality think tank. We generate intelligence for a multi-ethnic Britain through research, network building, leading debate and policy engagement.

W: www.runnymedetrust.org A: 7 Plough Yard, London EC2A 3LP E: [email protected] T: 020 7377 9222

Researching Older Black and Minority Ethnic People and Financial Inclusion Since 2010 we have been conducting groundbreaking research on older Black and minority ethnic (BME) people, investigating their current and future financial needs and experiences. This work is kindly supported by the Nationwide Foundation. As Age UK brings together those building an evidence base on our ageing society and developing solutions, our aim is to ensure that older BME people’s needs and voices are on the agenda. This briefing highlights some our emerging findings, including the rapid growth in the older BME population over the coming years, income and asset poverty, and barriers to overseas retirement.

• The number of BME people aged 70+ is projected to rise from 170,000 in 2006 to 1.9 million in 2051 — an 11-fold increase (see Fig 1). • BME people aged 50+ will make up 22% of the total 50+ population in 2051. • Policymakers must ensure that future services — including health and social care services, as well as financial services — adapt to meet the needs of this population.

Figure 1. Numbers of older BME people (England & Wales) 3.0 2.5 2.0

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1. The older BME population is rapidly growing

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2. People who were born overseas and want to retire to their country of birth face financial and other barriers • Many people who have lived and worked in the UK for 30 or 40 years but who then retire overseas receive UK State Pensions that are frozen in value when they leave the UK, rather than being annually uprated in line with inflation. • This means that people can lose out on up to £24,000 over 20 years of retirement.

• This applies to the vast majority of countries outside Europe — including India, Pakistan, Bangladesh, all African countries and most Caribbean countries. • People are also unable to move permanently away from the UK due to the much higher costs of healthcare overseas, despite having contributed to the NHS throughout their lives.

3. Ethnic minorities are more likely to live in pensioner poverty and have less wealth • While 16% of white pensioners live in poverty, this rises to 46% of Bangladeshi & Pakistani pensioners and 25% of Black Caribbeans. • BME people are less likely to have a private pension, even among those in work, and are less likely to own their homes. • BME households hold less total wealth. Bangladeshi and Black African households hold £15k and £21k respectively, compared to £221k for White British ones (see Fig 2). • Policymakers must ensure that BME people are able to support themselves — through being able to work, earn and save — and be provided with adequate and appropriate support, whether through the NHS, social care or state pensions.

Figure 2. Total household assets Bangladeshi Black African Black Caribbean Pakistani Indian White British 0

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Total assets (£k)

4. New film of BME people debating retirement: Facing Financial Futures We have just released a short documentary film of BME people debating the various challenges associated with retirement. In December 2011 we brought together 50 people from a range of ethnic backgrounds. Participants reflected on a series of facts and policies, drawing on their own experiences and others’ perspectives. Most importantly, people took the opportunity to voice their concerns and propose solutions.

Watch the film at: • http://tinyurl.com/7nc2bjz, or • http://www.youtube.com/runnymedetrust

Some key concerns included: • people having to spend all day in libraries and pubs because they cannot afford to heat their homes; • feeling that people should not be forced to work for longer, given ill health and a lifetime of work and contribution; • feeling that having your pension taxed is an unfair case of double taxation.

Find out more and get involved All our reports can be downloaded for free from www.runnymedetrust.org, including: • The Future Ageing of the Ethnic Minority Population of England and Wales (2010) • To Stay or Not to Stay: Retirement Migration Decisions among Older People (2011)

We will be continuing our work throughout 2012, publishing research on: • the factors influencing where in the UK — which city, region or rural area — BME people want to spend retirement, and • BME people’s experiences of grandparenting.

If you would like to discuss our work please contact Phil Mawhinney at [email protected] / 0207 377 9222 www.runnymedetrust.org

youtube.com/runnymedetrust