What needs to be done for a more inclusive financial system?
FCA on extending financial inclusion: interactive investor’s Myron Jobson comments.
29th September 2023 14:00
by Myron Jobson from interactive investor
Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “There is a palpable sense that the glaringly obvious financial inequalities across racial, ethnic and minority groups have been long ignored.
“As a black man working in the financial industry, it often leaves me frustrated. The last concerted drive for greater financial inclusion, in my opinion, was during the resurgence the Black Lives Matter movement three years ago, and what we really need to see now is more substance.
“The challenge is to proactively endeavour to understand how the system plays a role in producing unequal economic outcomes across the diversity spectrum, how it directly contributes to wealth inequality and establish what needs to be done for a more inclusive financial system – a key enabler in reducing poverty and boosting prosperity. Better collection of data from minority groups is vital to this end.
“Financial education is an important tool to readdress the wealth imbalances in society. Sadly, there is a clear link between young people who are most in need of financial education and financial deprivation. Research from The Centre for Financial Capability and the charity MyBnk shows 76% of schools with children most in need of financial education are in more deprived areas, with 67% of those schools above the national average for pupils eligible to receive free school meals.
“Whatever subjects pupils choose to specialise in, everyone needs to understand how to budget, how savings can accumulate over time, and the need to plan for a secure future. With the levelling up agenda a long-term commitment, we ask the government to give personal finance lessons the priority they deserve, and we continue to campaign for more financial education in schools.”
interactive investor published a press release on Wednesday this week outlining the ethnicity pensions gap.
The key findings include:
- Twice as many White British pensioner households receive an occupational pension than Asian pensioner households (64% versus 31%).
- Black pensioner households are least likely to draw income from investments and most likely to work at retirement and receive income-related benefits.
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