The ‘Black Tax’ sucking cash from our savings

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.

“An 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 them, 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 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 government workplace pension scheme, and maintains the Black community needs to be “intentional” and consider doing more than just using the “high street bank system” in order to be ready for retirement.