Retirement Solutions
Pensions inequalities: What can help those currently slipping through the net?
How big is today’s ethnicity pensions gap – and what is the solution?
From the social and health impacts on front-line staff during the pandemic to the economic burdens lower paid workers face now, the upheaval of the past few years has had vastly different effects across society.
Ethnicity remains one of the major fault lines for inequality in 2023. We know that disadvantage stretches beyond the workplace and into retirement. Our latest research aims to quantify the impact of the turmoil, and to examine ways we can begin to tackle it.
Research highlights
The average minority ethnic person’s pension pot is less than half the size of the average white British person’s (£52,333 to £114,941)
The key reason preventing minority ethnicities from investing into a pension is not having enough spare income. Over half of minority ethnicities say the pandemic impacted their finances, versus 37% of white British people
43% of minority ethnicities think they may have to access their pension early to support themselves, compared with just a third (34%) of white British people
Source: L&G, Humankind Research and Tapestry Research, November 2022 to December 2022. Survey of 2,018 nationally representative UK adults with quotas set on age, gender, location and ethnicity. We then boosted our sample with 2,000 additional minority ethnic respondents. Minority ethnicities include both British and non-British nationals.
Research reports
As a provider with one of the largest number of scheme members in the UK, we bring you fresh insights into what workplace savers think about pensions and retirement.
The L&G Islamic Investment Proposition webinar
In partnership with HSBC, we recently launched our new L&G Islamic Investment Proposition.
This is an innovative proposition that aims to provide Muslim DC pension members with access to a choice of fully-Shariah compliant investments. The proposition includes a lifestyle option – with Legal & General managing the member’s risk as they approach retirement – and three self-select funds for members who like to actively manage their investments. The funds within the proposition will be overseen by HSBC, one of the leading asset managers for Islamic finance*.
*Source: HSBC, 2024
Content & Media
Sometimes it’s hard to be a woman – tackling the gender pension gap
In this podcast, Stuart Murphy, Legal & General’s Co-Head of DC, and Al Miles, Legal & General’s Senior Solutions Strategy Manager, discuss the issues that mean women’s pension pots are half the size of men’s when they come to retire.
Is the gender pension gap just the inevitable consequence of the biological reality for women of pregnancy which leads to career breaks, part-time working or stepping back from more senior, challenging roles to focus on child-rearing? Or are there steps we could be all taking to mitigate the financial penalty of parenting that affects mothers more harshly than it does fathers?
Contributors:
Heather Forse, DC Content Manager
Stuart Murphy, Co-head of DC
Al Miles, Legal & General’s Senior Solutions Strategy Manager
Girl power in pensions? Not yet, as women slip through auto-enrolment net
ESG and long term themes
It's not news that women's salaries – or pensions – lag behind men's, but what can be done? LGIM's latest research, gathered as UK savers face the largest price spike for decades, delves into what might help to soften the sharpest barbs of this thorny issue.
03 Oct 2022 4 min read
Levelling up in pensions? Younger workers are playing on bumpier fields
ESG and long term themes
Rita Butler-Jones, our Co-Head of DC, considers the reality for younger workers and how to close the gaps in pension support.
26 Sep 2022 5 min read
Long shadow of today's cost of living crisis could see lower paid workers facing harsher retirements
ESG and long term themes
With the cost of living rising, many lower paid workers aren't only struggling to meet current financial obligations but may also miss out on the long-term benefits of a workplace pension as they make tough spending choices. Stuart Murphy, Legal & General's Co-Head of DC, considers the reality for low-paid workers and how to close the gaps in pension support.
21 Sep 2022 6 min read
No country for old(er) women? Even female-dominated sectors witness gender pension gap
Investment strategy
Regardless of where they've worked, women's retirement savings are likely to be substantially less than those of men in similar roles. We look at the evidence, consider what might help address the imbalance, and confront the question of why it matters.
By Rita Butler-Jones
27 Jul 2022 4 min read
Is it time for all of us to wake up to the gender pension gap?
ESG and long-term themes
The gender gap in retirement savings doesn't happen overnight: it starts to build even in the early days of women’s careers. Is this the inevitable consequence of things we can’t change or is it time for pension providers, employers and policymakers to intervene?
24 Jun 2022 7 min read
Find out more about our retirement solutions
L&G Target Date Funds
One of L&G’s flagship DC strategies. It offers a to-and-through retirement solution, giving members access to high levels of growth early in the strategy, managing risk as retirement approaches and remaining invested into retirement, providing a truly end to end solution.
L&G Investment Pathways
An intuitive and easy to understand retirement solution for non-advised members. They allow members to choose up to four investment pathways according to their retirement needs and gives them the flexibility to adapt their choices in line with their changing lifestyles.
Find out more about our two Investment Pathway options:
The L&G Islamic Investment Proposition
The L&G Islamic Investment Proposition is an innovative proposition that aims to provide Muslim DC pension members with access to a choice of Shariah-compliant investments. Offering a lifestyle option with a glidepath, along with self-select funds, the funds within the proposition will be managed by a leading asset manager for Shariah-compliant investing, HSBC.
Get in touch
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Risks
The value of any investment and any income taken from it is not guaranteed and can go down as well as up, and investors may get back less than the amount originally invested.
The Underlying Manager, and not Legal & General Assurance (Pensions Management) Ltd “PMC”, is responsible for ensuring the Underlying Fund complies with Shariah principles. Accordingly, PMC makes no representations in relation to the compatibility with Shariah principles of gaining exposure to the Underlying Fund via PMC.