Check your investments

GOOD TIMES AHEAD:

CHECKING YOUR pension and investments are more important now than ever.

Elizabeth Buko, founder of Wealth From Little, a platform to help Black women change how they think about money, told The Voice that people should be prioritising their retirement plans as we are living much longer.

“Make sure your workplace pension, if you have one, is growing at a rate that will give you the return that you want,” she said.

Ms Buko said people who have taken time out from working to raise children need to check if they are “eligible for the full state pension.”

She said: “If you haven’t put in 35 years of National Insurance contributions or credits then you might not actually get the full state pension.”

She added: “If you are not entitled to a state pension, you may want to think about starting a private pension for yourself.”

Ms Buko added those who have worked for a minimum of 10 years will get a very small weekly state pension, but ad vises people to research their options and entitlements so they do not get a “shock” when they reach retirement age.

She said there is help avail able, like National Insurance credits, which can be applied for, if there were gaps in your employment history from car ing for someone or raising chil dren – which applies to both men and women.

Ms Buko said if you are aged between 18 and 39, consider opening a Lifetime ISA, where you can save for a deposit for your first home or use it to save for retirement and the “govern- ment adds a 25 per cent bonus” which you “can use towards your pension.”

Owning property could be a “great way to build up rental income which can support you in your retirement years”, according to the financial coach.

Ms Buko said her advice is only a guide and is advocating for the Black community to do extensive research and speak to experts so they can make informed decisions.

According to Ms Buko, people in their 30s and 40s should be ideally investing half of their age into their pension every month.

For example, if you are 40, she recommends putting 20 per cent of your monthly wages into your pension plan.

The financial coach believes one way more mature Black workers can increase their income is by using their specialist skills and extensive experience to either start a business or “charge more” for their ser- vices. She said: “If you are in your 50s and 60s, because you have a lot of personal experience and are now a specialist in a particular area, you can monetise it and charge higher fees for your time.”

Ms Buko said people over 50 should be saving approximately 35 per cent of their monthly income into their pensions and believes communities should research if they can dramatically increase their income by switching from an employee to a contractor in their respective

She is also warning the Black community to take action now, to prevent a pension poverty crisis with elderly family members and the next generation.

Caroline Abrahams, Age UK Charity Director, said: “Our own studies have shown that for Black older people the risk of poverty in later life is nearly twice as high as for White pensioners.

“We also found that this group has lower average incomes, are more likely to receive means-tested benefits, and less likely to receive private pensions.

“This could be due to their financial position over their lifetime, or if they haven’t been able to build up all the contributions needed for the full State Pension.

“How well off you are in retirement is largely the product of what you have been able to earn throughout your working life.

“Going forward, it’s crucial that Black people are able to access good employment opportunities throughout their working lives so they can develop their careers. Black people need better access to private pensions, too, because these make a big difference to your income once you retire.

Ms Abrahams also said the government could strengthen automatic enrolmentto increase pension savings as a way to combat pension poverty in Black communities.

She added that “there’s a huge amount that needs to happen to dismantle the barriers that hold Black people back in education and the labour market, the consequences of which can really hit you hard once you retire.”

Ms Abrahams said Age UK will always encourage any older person who’s feeling the pinch in retirement to check if they might be entitled to some extra help.

According to the charity, each year up to £2.4bn of Pension Credit and Housing Benefit go unclaimed.

Ms Abrahams added: “Pension Credit is a really important benefit that can make a big difference. It’sa meanstested, tax-free benefit for pensioners that opens the door to many other potential benefits including:

• A free TV licence (if also over-75)

• Help with Council Tax

• Free NHS dental treatment and help towards the cost of glasses and travel to hospital

• A Cold Weather Payment of £25 when the temperature is 0°C or below for 7 days in a row

• Help with rent

• An extra payment within Pension Credit for carers, worth up to£38.85a week

“We encourage any older person who is worried about money and/or who thinks they may be entitled to claim benefits to contact us at Age UK for free information and advice on 0800 169 65 65 to check they’re receiving all the financial support available.

“Alternatively, people can visit www.ageuk.org.uk/money or contact their local Age UK for information and advice.”

Age UK says they have a free and anonymous Benefits Calculator on their website which can provide an estimate of the benefits that older people could be entitled to.

Continued from page 18 referring to all of your financial assets, such as money, investments, property and land that can be passed down from one generation to the next.

Ms Flavius wants “open conversations” about money, in- vestments, retirement and wills “normalised” in Black communities to protect any generational wealth, as circumstances can change very quickly. She said: “Have conversations with your kids about workplace pensions and make sure they’re also enrolled into them.”

The business owner said she “grew up in a household that did not talk about finances at all”, adding: “Passing on whatever knowledge you are gaining to the younger generation is important, even if we are learning the knowledge late ourselves.

“It can still build that wealth, there is a huge wealth gap in the UK.”

She believes more “safe spaces” for Black women and men to discuss their financial situation are needed to break down the barriers which stop members of the Black commu- nity coming forward to seek financial help.

According to leading charity Age UK, more than two million pensioners live in poverty in the United Kingdom

Worryingly, for older people from Black backgrounds, they are twice as likely to ex- perience poverty compared to white pensioners, according to the charity.

The latest figures show that 3 in 10 (30 per cent) of older people from Black ethnic groups are experiencing poverty in old age compared to 16 per cent of white pensioners.