A South Asian disadvantage? Differences in occupational pension membership in the UK

The UK state pension system offers a state pension that is relatively low, and as a result, occupational pensions have been a key aspect of pension protection for employees to ‘top up’ their income in later life. Previous research reported that individuals from South Indian groups (Indian, Pakistani and Bangladeshi) are less likely to contribute to occupational pensions than White British individuals due to the interaction of their labour market participation and pension membership patterns, meaning they are less likely to receive income from pensions and more likely to face poverty in later life. This study uses individual data from the first wave of Understanding Society and investigates patterns of employment and the determinants of membership in an employer’s pension scheme among working-age individuals from minority ethnic groups and the White British population. The analysis focuses specifically on patterns of occupational pension membership for individuals from the three South Indian groups compared to White British individuals and those from other ethnic groups. This paper is based on Vlachantoni, A. et al (2015) ‘Ethnicity and occupational pension membership in the UK’, Social Policy and Administration. Article first published online: 14 APR 2015, DOI: 10.1111/spol.1213